Chapter 5 Bearers of (Good) News: The Impact of Business News Reports on Acquirer Short-Term Performance

Investor Responses Towards Corporate Action

“…Signalling theory suggests that there is a connection between a company's information and the company's prospects. Signal theory has been carried out in several studies to find out how signal can affect investors decisions [9]; [11]; [16]; [54]; [57]; [61]; [74]. M&A have an informative value for investors that can influence their decision making and is a signal for investors.…”