Google attention and target price run ups

Antonios Siganos

International Review of Financial Analysis, 2013, vol. 29, issue C, 219-226

Abstract: We explore the increase in the share prices of target firms before their merger announcements. We use a novelty Google search volume to proxy the market expectation hypothesis according to which firms with an abnormal upward change in Google searches are identified as firms with potential merger activity. We find that Google indicators can explain a larger percentage of the price increase in target firms before their mergers than the Financial Times. However even the Google proxy of the market expectation hypothesis can only explain at best 36% of the target price run ups.

Keywords: Target price run ups; Mergers; Market anticipation; Google search volume (search for similar items in EconPapers)
JEL-codes: G14 G34 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:29:y:2013:i:c:p:219-226

DOI: 10.1016/j.irfa.2012.11.002

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