We apply the idea of Strych (2020) that short sellers of acquirers' stocks infer from their private observations of stock recalls that the deal will be more likely terminated. To profit from such informational advantage through short selling, Strych (2020) expects that acquirers' short sellers...

We apply the idea that managers of acquiring firms intend to entrench themselves through M&A in the sense of Shleifer and Vishny's (1989) entrenchment strategy through manager-specific investments. We propose that these managers implement bidder termination fee provisions in M&A contracts to...