Jul 31st, 10:15 AM - 11:15 AM
Excess Stock Return and Volume Activity Surrounding the Merger Announcement Date for Hotel Company Mergers from 2004 to 2007
An unprecedented number of hotel company mergers took place between 2004 and 2007. The purpose of the study was to determine whether or not there were excess stock returns or volume activity in the periods surrounding the merger announcement date in the trading of 19 public hotel companies which merged between 2004 and 2007. The study identified statistically significant relationships in 1) trading volume of companies that merged as compared to companies that did not merge; 2) excess returns for the twenty days including and after the merger announcement date as compared to zero.