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This paper examines changes in acquirer and target companies' Credit Default Swap (CDS) spreads as a proxy for default risk around official mergers and acquisitions (M&A) announce-ments. Related literature extensively documents wealth effects triggered by M&A from the shareholders' perspective,...
Persistent link: https://www.econbiz.de/10012843225
all bidders forecast, we document a higher likelihood of post-merger litigation and CEO turnover for bidders with a weak … forecasting reputation and for those that underperform post-merger …
Persistent link: https://www.econbiz.de/10012905443
. Therefore, this study aims to close this gap by exploring the effect of merger announcements on CDS spreads empirically. A …
Persistent link: https://www.econbiz.de/10012852376
We study how securities analysts influence managers' use of different types of earnings management. To isolate causality, we employ a quasi-experiment that exploits exogenous reductions in analyst following resulting from brokerage house mergers. We find that managers respond to the coverage...
Persistent link: https://www.econbiz.de/10013005621
private merger negotiation process affects bidding strategies. Weprovide strong evidence that market reactions to information … events during the private sale processhave a substantial impact on takeover prices. However, the sensitivity of private bids … duringmerger negotiations have important implications for takeover costs …
Persistent link: https://www.econbiz.de/10013224166
This paper offers new evidence on informed trading around merger and acquisition announcements from the UK equity and …
Persistent link: https://www.econbiz.de/10013133655
' information processing even in the context of one of the largest and most important corporate events – merger announcements. More … reaction to Friday stock swap announcements is muted, as evidenced by lower acquirers' merger announcement abnormal trading … volumes and less pronounced acquirers' merger announcement abnormal stock returns …
Persistent link: https://www.econbiz.de/10013116126
Merger and Acquisition (M&A) activities are not well-anticipated corporate events in the equity market. Do … be merger arbitragers and buy more shares of target firm stocks to speculate on final deal consummation; while banks …
Persistent link: https://www.econbiz.de/10013116852
The paper examines the returns to shareholders of acquiring companies in India during the period 2003-08. The abnormal returns due to the announcement of mergers and acquisitions (M&A) and return on equity funds five years before and after M&A have been examined. The study also performs a...
Persistent link: https://www.econbiz.de/10013099698
Prior research has addressed the question of whether certain events cause a transfer of wealth between stockholders and bondholders but does not control for the events' impacts on firms' credit risk. This may explain why many studies fail to identify wealth transfers. By employing announcements...
Persistent link: https://www.econbiz.de/10013093714