Diamond Modeling Agencies | Falling Share Price

Diamond Modeling Agencies perceives that the link between a falling share price and increased likelihood of a takeover is obvious, but the effect was previously thought to be smaller. That's because of conflicting signals; a price decline makes a company more affordable for suitors, but the decline could be caused by anti-takeover measures of something else that makes suitors want to walk away. The study's authors controlled for that possibility by looking at mutual fund redemptions between 1980 and 2007.

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