By examining stock prices around merger announcement dates,event studies provide inconclusive results that mergers benefit only targets,not acquirers.

Event Studies

A research method that assesses the impact of specific events on the value of a company’s stock.

Merger Announcement Dates

Specific dates on which companies publicly announce their intention to merge with or acquire another company, critical for market reactions and investment decisions.

Stock Prices

The market value of a company's shares, fluctuating based on supply and demand, corporate news, and market conditions.