Figure 14.15 Stock Performance Prior to Forced Departures of ManagementCumulative mean prediction error (%)Month relative to announcementForced departuresStock prices decline, on average, by more than 40% (adjusted for market performance) in the three years prior to forced departures of management.Furthermore, suppose you are the CFO of a company whose stock price drops significantly upon announcement of an acquisition. The market is telling you that the merger is bad for your firm. Serious consideration should be given to canceling the merger, even if, prior to the announcement, you thought the merger was a good idea
đang được dịch, vui lòng đợi..
