Search Results - subject:"Merger arbitrage"

Short selling and price pressure around merger announcements

Blau, Benjamin; Fuller, Kathleen P.; Wade, Chip - In: Journal of financial services research : JFSR 48 (2015) 2, pp. 143-160

Persistent link: https://www.econbiz.de/10011478375

Merger arbitrage short selling and price pressure

Liu, Tingting; Wu, Juan Julie - In: The journal of corporate finance : contracting, … 27 (2014), pp. 36-54

Persistent link: https://www.econbiz.de/10010410169

Merger arbitrage short selling and price pressure

Liu, Tingting; Wu, Juan - In: Journal of Corporate Finance 27 (2014) C, pp. 36-54

We evaluate the over-valuation hypothesis and merger arbitrage price pressure hypothesis as potential explanations for … the majority of the negative announcement returns can be attributed to price pressure induced by merger arbitrage short … closings and among withdrawn stock deals further supports merger arbitrage price pressure explanation. We also find merger …

Persistent link: https://www.econbiz.de/10010906832

Merger arbitrage and the interaction betweentarget and bidder stocks during takeover bids

Hutson, Elaine; Kearney, Colm - 2005

haveimplications for merger arbitrage, and we suggest a technique for controlling for differential betas inthe merger arbitrage …

Persistent link: https://www.econbiz.de/10009475707

Slow Moving Capital

Mitchell, Mark; Pedersen, Lasse Heje; Pulvino, Todd - C.E.P.R. Discussion Papers - 2007

We study three cases in which specialized arbitrageurs lost significant amounts of capital and, as a result, became liquidity demanders rather than providers. The effects on security markets were large and persistent: Prices dropped relative to fundamentals and the rebound took months. While...

Persistent link: https://www.econbiz.de/10005788922

Shall One Invest in Cancelled Targets after the Termination of Mergers and Acquisitions?

Lai, Gene C.; Moore, Keith M.; Oppenheimer, Henry R. - In: International Journal of Business and Economics 5 (2006) 2, pp. 93-110

Many portfolio managers on Wall Street believe that investing in cancelled targets after the termination of mergers and acquisitions is a profitable strategy because arbitrageurs usually unwind their position after the cancellation announcement. While the anecdotal evidence shows that...

Persistent link: https://www.econbiz.de/10010837278

The Profitability of Merger Arbitrage: Some Australian Evidence

Maheswaran, Krishnan; Yeoh, Soon Chin - In: Australian Journal of Management 30 (2005) 1, pp. 111-126

In this paper we examine the risk-adjusted profitability of merger arbitrage in Australia. Using a sample of 193 merger …-weighted merger arbitrage portfolios. Benchmarking the returns on the merger arbitrage portfolios against the CAPM and Fama and French … (1993) three-factor models, we find that merger arbitrage generates statistically and economically significant excess risk …

Persistent link: https://www.econbiz.de/10010769529

The time-varying prediction of successful mergers

BARONE-ADESI, Giovanni; CORVASCE, Giuseppe

The dynamics of the physical probability of firms that undertake a stock swap merger is developed through a simple model. Using a sample of 1090 deals from 1992 to 2008, we show how movements in target stock prices are informative of the success or failure of a stock swap merger and how...

Persistent link: https://www.econbiz.de/10008479282