Table 7

Cumulative average abnormal share trading volume growth for days -42 to -1 relative to the announcement of the first bid for 1,506 NYSE- and Amex-listed target firms that received takeover bids from 1975-91. For each firm, a year of daily share trading volume data is used to estimate a regression model (see table 6) to predict daily share volume, ending 126 trading days before the date of the first bid.

SampleSample Size, NAverage Volume Runup
Main1,5061.278
Successful1,1701.361
Unsuccessful3360.990
News6911.360
No news8151.209
Poison pill2280.974
No pill1,2781.332
Auction3071.064
No auction1,1991.333
Tender offers5621.548
Mergers9441.117
MBOs1711.440
Cash9231.303
Equity2511.097
Insider trading1352.155
No insider trading1,3711.192

© Copyright 1996, G. William Schwert
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