Seminar paper from the year 2009 in the subject Orientalism / Sinology - Chinese / China, grade: 1,0, University of Tubingen (Asia-Orient Institute, Department of Chinese and Korean Studies), course: Regional Studies Greater China, language: English, abstract: The former British colony of Hong Kong is frequently cited as a classic example of limited government and free market capitalism. The island is widely considered to be one of the last bastions of free enterprise, and by governmental measures the least regulated marketplace. In many papers, Hong Kong is therefore referred to as a so...

This study examines the kind of information 'informed' traders have prior to a takeover announcement using options of target firms and elaborates on the cross-sectional relationship between options and stocks around takeover announcements. Financial markets are driven by information and by individuals that generate, process, and disclose this information to the market. Naturally, there have to be individuals who possess more information about a firm or a future event than other market participants. Mergers and acquisitions are particularly interesting events in this regard because they can...