In this Q&A, we speak with Professor David Denis, who researched the empirical data on fairness opinions and published “Information Production by Investment Banks: Evidence from Fairness Opinions” last year in the Journal of Law and Economics. This article directly examines whether financial advisors’ fairness opinions tend to under- or over-value the acquisition target and, if so, by how much. To read the interview, click the link below.
Market expectations and security prices
Market participants use the information available to them at any given time to form expectations of the future performance of a company and a company’s stock...