Frederick Davis
Concordia University
Financial economicsShareholderAccountingEvent studyVariety (cybernetics)Information asymmetryBusinessActuarial scienceEconomicsInstitutional investorClass actionCompletion ratePurchasingInsiderCandidacyRumorInsider tradingSample (statistics)SpeculationMergers and acquisitionsMonetary economicsPrivate information retrieval
11Publications
2H-index
11Citations
Publications 9
Newest
#1Svetlana Davis (Bishop's University)
#2Frederick Davis (Concordia University)H-Index: 2
This study analyzes a hand-collected sample of 803 guerrilla marketing campaigns from 2007 to 2017 to examine the impact on abnormal share price performance. Using both event study and cross-sectional analysis, results indicate that event-period abnormal returns are positive and in line with the returns of other advertising activities such as celebrity endorsements. Most emotional appeals analyzed (particularly joy) are associated with significantly positive company returns, whereas humor and ra...
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#1Frederick Davis (Concordia University)H-Index: 2
#2Hamed Khadivar (Concordia University)H-Index: 2
Last. Thomas Walker (Concordia University)H-Index: 14
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Abstract In this paper we examine institutional trading in proximity to takeover rumors by combining the ANcerno dataset of transaction-level institutional trades with a unique sample of takeover rumor ‘scoops’. We find that institutions are net buyers in firms which subsequently become subject to takeover speculation and that institutional trading predicts which rumored firms will eventually receive takeover bids. Segregating funds according to their propensity to trade, we show that those less...
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#1Frederick Davis (Concordia University)H-Index: 2
#2Hamed Khadivar (Concordia University)H-Index: 2
Last. Thomas Walker (Concordia University)H-Index: 14
view all 3 authors...
We examine derivatives trading prior to takeover rumors in a sample of 1,638 publicly traded U.S. firms. The volume of options traded is abnormally high over the 5-day pre-rumor period, primarily due to the number of out-of-the-money call options traded. In addition, the direction of option trades (abnormal call volume minus abnormal put volume) prior to takeover rumors predicts forthcoming takeover announcements and rumor date returns. Identifying suspicious trades, we find evidence of individu...
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#1Frederick Davis (Concordia University)H-Index: 2
#2Hamed Khadivar (Concordia University)H-Index: 2
Last. Thomas Walker (Concordia University)H-Index: 14
view all 4 authors...
We examine insider trading surrounding takeover rumors in a sample of 1,642 publicly traded U.S. firms. Using difference-in-differences regressions, we find that insider net purchases increase within the year prior to the first publication of a takeover rumor, particularly when rumor articles are either accurate (lead to a takeover announcement) or informative (provide substantial justification for the rumor’s publication). Moreover, we find abnormal insider trading to be a significant predictor...
#1Anup Basnet (Concordia University)
#2Frederick Davis (Concordia University)H-Index: 2
Last. Kun Zhao (Concordia University)
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This paper investigates whether shareholder class action litigation affects the takeover candidacy, premium, and completion rate of mergers and acquisitions involving defendant target firms. We use a comprehensive data set of publicly traded U.S. firms that became the targets of takeover bids between 1998 and 2016 and find that firms subject to shareholder class action lawsuits within the previous two years are more likely to be targeted for acquisition while commanding a significantly higher pr...
#1Sandra Betton (Concordia University)H-Index: 9
#2Frederick Davis (Concordia University)H-Index: 2
Last. Thomas Walker (Concordia University)H-Index: 14
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We perform content analysis on a unique sample of 2074 first-instance published takeover rumors to study how the rationale underlying a publication relates to its credibility and its association with firm returns and rumor accuracy. While most takeover rumors are inaccurate, we find that distinguishing between various justifications of potential takeover activity as provided within the published article serves to predict takeover announcements, subsequent firm abnormal returns, and – to a lesser...
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#1Frederick Davis (Concordia University)H-Index: 2
#2Thomas Walker (Concordia University)H-Index: 14
Last. Linyi Zhou (Concordia University)H-Index: 1
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Purpose Within the context of mergers and acquisitions, the purpose of this paper is to clarify the relationship between the deal initiator and various outcomes of the deal, particularly in consideration of the cash position of the acquiring firm. Design/methodology/approach Using hand-collected deal initiation data from various filings on the Securities Exchange Commission EDGAR online database, this paper performs a series of event study analyses, multivariate analyses, a Heckman two-step esti...
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#1Frederick DavisH-Index: 2
#2Behzad TaghipourH-Index: 1
Last. Thomas WalkerH-Index: 14
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Purpose The purpose of this paper is to investigate the trading patterns of corporate insiders, both managing and non-managing, around the announcement dates of securities class action lawsuits and related legal settlements. Design/methodology/approach The authors use market model event study methodology to examine the impact of class action litigation and settlement announcements on the stock prices of sued firms. The authors then determine the extent of abnormal insider trading surrounding suc...
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Using a sample of 1060 takeover announcements from 1982 to 2006, this study is the first to document significant short-run cumulative average abnormal returns (CAARs) in target firms occurring at the time bidding firms last announced raising capital prior to the takeover bid. These target CAARs are substantially higher in combination with other documented takeover signals, such as when takeover bids have recently occurred within the same target industry, when bidding and target firm industries a...
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