"This paper examines the impact of mergers on default risk, finding that, on average, a merger increases the default … risk of the acquiring firm. This is surprising for two reasons: risk reduction is among the reasons commonly cited for … mergers, and asset diversification should reduce default risk unless the newly-merged firm takes some action to increase risk …

its core, the strategy is one that earns an excess return for the assumption of a specified risk. Merger arbs purchase … usually trade some measure below the agreed-upon merger price, due to the risk that the merger might not actually occur. If …. The risk to an individual risk arbitrage investment, then, comes from one specified source: the risk of deal completion …

breach. Parties appear to negotiate reps consistent with the risk allocation necessary in an agreement, utilizing reps to …. These results highlight the importance of reps in risk allocation, reducing information asymmetry and creating value, but …

"Quantitative risk assessments cannot eliminate risk, nor can they resolve trade-offs. They can, however, guide … principled risk management and reduction - if the quality of assessment is high and decision makers understand how to use it …. This book builds a unifying scientific framework for discussing and evaluating the quality of risk assessments and whether …