Benson, Bradley W. - 2011
Using a sample of 3,688 mergers and acquisitions over the period of 1992 to 2005, we find that post-merger equity risk … declines roughly 18% in the year after the announcement. We find that post-merger equity risk is negatively related to the … sensitivity of CEO wealth to stock return volatility (vega). The negative relation between vega and equity risk over the post …