Takeovers and Stock Price Volatility

  title={Takeovers and Stock Price Volatility},
  author={Jeffrey Malcolm Lacker and John Arnstein Weinberg},
There is now a large literature documenting the statistical relation between stock prices and dividends at the aggregate level. A robust finding is that stock prices are too volatile to be explained by subsequent changes in dividends. Observations of large market swings, like the crash of October 1987 and the minicrash of October 1989, encourage the popular perception that stock prices are excessively volatile. While these observations have provoked a great deal of analysis, there has been… CONTINUE READING

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