In this article, we study a firm's merger strategy. When two firms merge, there are two types of transaction costs: fixed and proportional. To study the firm's merger strategy, we formulate the problem faced by the newly merged firm's management as an optimal stopping problem. Then, we derive...

This article focuses on the performance of Australian hedge funds. Using a survivorship bias free sample, we investigate whether Australian hedge fund managers have the ability to outguess the market. Specifically, we test the market timing and volatility timing skills of fund managers. Our...