We show that merger announcement returns account for virtually all of the measured size premium. An empirical proxy for … ex ante takeover exposure positively and robustly relates to cross-sectional expected returns. The relation between size … and expected returns becomes positive or insignificant, rather than negative, conditional on this takeover characteristic …

may affect the M&As in the post-IPO stage. We use a Cox proportional hazard model to test the relation between Delaware … decision, we adopt a Heckman switching regression method to estimate the relation between Delaware reincorporation and takeover … premiums and announcement returns. We report that IPO firms choosing to reincorporate in Delaware experience a higher …