... and acquisitions investor inattention investor inefficiency Studies examining how firms behave in response to M&A deals largely consider firms’ actions during the preannouncement period since this is when most deals are negotiated. ¹⁰ For example, prior studies find acquirers manage earnings...

... that insiders appear to benefit from trading prior to revenue recognition comment letters. We investigate whether the delayed price reaction to comment letter releases is due to investor inattention. Consistent with this explanation, we document that comment letters are downloaded infrequently from EDGAR...