examine timing of takeover rumors relative to merger waves. Peaks and troughs
of rumor activity coincide with changes in the volume of takeovers. At
aggregate market level, rumors should be viewed as coincident indicator of
merger activity. Consequently, change in the number of rumors coupled with
corresponding change in the merger volume can be interpreted as reversal in the
direction of merger wave.
classification numbers: G14, G34
Keywords: rumors, merger
waves, timing, market efficiency.