Offer Premiums and Stock Price Momentums in Japan: Contrasting Separate and Combined Momentum

This study investigates the differences between the results of full samples and those of momentum subsamples and between those of separate momentums, consisting of a target firm momentum and TOPIX momentum and those of combined momentums, for five variables of negotiated share ratio, target shareholding ratio, toehold shareholding ratio, and two types of misvaluation index of a target firm share price, by classifying each sample to the three offer premium sections subsamples: high premium, normal premium, and discount. Two major implications are that most results of the full sample reflect the relationships between offer premium and each relevant variable, which are not universally but unevenly found in the sample, and that there exist the combination effects of target firm momentum and TOPIX momentum, which are not able to be induced by the analysis of separate momentum and whose directions are not uniform. ; departmental bulletin paper