
Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman
Edition 6ISBN: 978-0073523149
Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman
Edition 6ISBN: 978-0073523149 Exercise 28
ANALYZING MANAGERIAL DECISIONS : Stock Market Reactions to 13D Filings
An investor must file a 13D form upon accumulation of 5 percent of the stock of a publicly traded company. Typically the stock market reacts quite favorably to these announcements. But outside block ownership has both costs and benefits.
Does the evidence on the stock market reactions to 13D filings suggest that the benefits of outside block ownership are typically larger than the costs Explain.
An investor must file a 13D form upon accumulation of 5 percent of the stock of a publicly traded company. Typically the stock market reacts quite favorably to these announcements. But outside block ownership has both costs and benefits.
Does the evidence on the stock market reactions to 13D filings suggest that the benefits of outside block ownership are typically larger than the costs Explain.
Explanation
Blockholders are those investors who hel...
Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman
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