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Your firm is considering making a stock-financed acquisition, and would like to estimate the signaling effect of a stock-financed acquisition. A recent event study found

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Your firm is considering making a stock-financed acquisition, and would like to estimate the signaling effect of a stock-financed acquisition. A recent event study found that the average signaling effect for a large sample was 2%. The event-study sample consisted of firms that were similar to your firm, with one difference: it had more well-established firms with more extensive analyst following, relative to your firm. You can then expect the signaling effect for your firm to be (greater / smaller) than the above-mentioned signaling effect of 2%. Why

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