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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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Secondary buyouts (SBOs) represent more than 50 percent of all buyouts in 2018. Even though general partners argue that SBOs are less attractive investment targets for buyouts and some empirical indication against an outperformance of SBOs exists, the share of SBOs continuously increases....
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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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