Market Signals About Investment Decisions: Do Managers Listen?

Yunxia Zhu
February 2009
Academy of Management Perspectives;Feb2009, Vol. 23 Issue 1, p84
Academic Journal
The article presents a management research brief of the 2008 study "Do managers listen to the market?" by James Kau, James Linck, and Paul Rubin, investigating the level of executive attention to public market signals in regards to merger and acquisition investment decision making. A review of the methodology and results of the study is given, pointing out what market factors executives favor as reliable sources of information and response predictors. Additional discussion is offered regarding the influence of agency cost theory.


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