Intro -- FINANCIAL FORECASTING AND DECISION MAKING -- TABLE OF CONTENTS -- Chapter 1 FORECASTING PREREQUISITES -- LEARNING OBJECTIVES -- An Overview of the Forecasting Process -- KNOWLEDGE CHECK -- More on the Forecasting Process -- PURPOSE OF FORECASTING -- FIRST-PASS FORECAST -- SIMULATION --...

Using a sample of 3,688 mergers and acquisitions over the period of 1992 to 2005, we find that post-merger equity risk declines roughly 18% in the year after the announcement. We find that post-merger equity risk is negatively related to the sensitivity of CEO wealth to stock return volatility...