Item 5 01 Change Of Control Drift
In plain terms
An 8-K Item 5.01 (change of control) is a rare corporate event that typically drifts higher for 1-3 months as deal terms get priced in.
How it works
8-K Item 5.01 (Change in Control of Registrant) is a discrete, rare governance event. Target firms exhibit positive post-announcement drift as the deal terms become clearer to the market. Distinct from m_and_a_arb (which targets the spread on announced deals): this catches the moment-of-filing event window.
Data dependencies
- Daily prices
Adjusted-close OHLCV for every US-listed ticker; primary price feed.
- SEC 8k events
Item-coded 8-K events (1.01 material agreements, 4.02 non-reliance, etc.).
Expected edge
- Reported return
- +3 to +6% over 30-90d
- Tested over
- T+1 to T+90d
Bradley-Desai-Kim 1988; +3 to +6% over 30-90d on the post-filing drift.
Related families
When an 8-K announces a director or officer change (Item 5.02), the market typically rerates the firm over the next 1-6 months. Long for 30 to 180 days.
When a ticker files an 8-K signaling an M&A deal, the stock drifts directionally for 1-3 months as the market re-rates it.
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