Do M&A announcements affect stock prices?
Danesh Kissoon, Associate (London)

At the announcement of an M&A deal, merger arbitrage investors often take a long or short position on a target company depending on whether they believe the deal will be successful or a failure. Should an investor be wrong, a reversal in share price can results in heavy losses. Can data help investors make more informed decisions? In this article, we summarise a study that reviews variables that could potentially be used to predict stock returns on target companies after an M&A announcement.