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As a result of Solvency II, academics and practitioners anticipate further consolidation in the insurance industry as the new regulatory framework rewards well-diversified insurers with lower capital requirements and challenges smaller insurers to meet the (operational) regulatory requirements....
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We find that the threat of takeover has a negative relation with default risk. The result is robust to alternative … identify improvement in performance and earnings quality in response to the threat of takeover as channels underlying our main … result. We find that the threat of takeover on default risk is more pronounced for firms with low information asymmetry and …
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We investigate the takeover strategies of high default risk acquirers and their value impact. We find that these …
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Using a cross-country sample of mergers and acquisitions, we examine the role of cultural, institutional, geographic and managerial factors on post-merger default risk. Our results are consistent with the asymmetric hypothesis that managers take advantage of the overvaluation and volatility of...
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The topic of bank default risk in connection with government bailouts has recently attracted a great deal of attention. In this paper, the question of how a bank’s default risk is affected by a distress acquisition is investigated. Specifically, the government provides a bailout program of...
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