The role of learning in M&A

What better way to kick off "summer" than with a really cool paper from Aktas, de Bodt, and Roll? Short version: The paper confirms the now well known finding that Cumulative Abnormal Returns (CARs) drop with subsequent takeover announcements. The authors proceed to separate takeovers that are done by "rational CEOs" and those that are done by "hubris infected" CEOs. Both groups do show learning