Using terrorist attacks as an exogenous shock to safety uncertainty, we provide causal evidence that firms located near terrorism-stricken areas receive lower takeover premium. The latter finding is reflected in lower target firm abnormal returns and synergy gains. Additionally, given that firms...

This paper examines whether and to what extent exposure to climate risk affects the deployment of corporate resources to working capital. Using a large sample of listed US firms, we find that exposure to climate risk is negatively associated with working capital. This effect is accentuated in...