“…In doing so, it provides a framework that reconciles the market timing literature (e.g., Rhodes-Kropf et al, 2005, Dong et al, 2006, Shleifer and Vishny, 2003 with the non-behavioral side of the literature. Finally, our methodology builds on the literature on expectations in merger announcements (Malatesta and Thomson, 1985, Eckbo et al, 1990, Cremers et al, 2009, and Cornett et al, 2011. These papers predict merger candidacy and link subsequent returns to the surprise effect of the announcement.…”