Takeover bids and capital market efficiency

Jan Hájek, Miroslava Jindrová

This article deals with the structure and evolution of tender offers, takeover prices and the effects of tender offer announcements in the Czech Republic in 2001−2005. Semi-strong form efficiency is examined by means of the traditional event study methodology. Based on the results it is impossible to prove either semi-strong form efficiency of the Czech stock market or trading based on private information.

Issued: June 2007

Download: Thematic article in the Financial Stability Report 2006 (pdf, 289 kB)