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Asset Volatility and Capital Structure : Evidence from Corporate Mergers

Levine, Oliver - 2020

identify the effect of business risk on capital structure. We find that post-merger changes in leverage and cash holdings are … strongly predicted by expected asset volatility changes estimated using pre-merger information. These capital structure …

Persistent link: https://www.econbiz.de/10012856772

Cash mergers and the volatility smile

Bester, C. Alan; Martinez, Victor H.; Rosu, Ioanid - 2018

We study both theoretically and empirically option prices on firms undergoing a cash merger offer. To estimate the … merger's success probability, we use a Markov Chain Monte Carlo (MCMC) method using a state space representation of our model …. Our estimated probability measure has significant predictive power for the merger outcome even after controlling for …

Persistent link: https://www.econbiz.de/10011951308

Corporate acquisitions and firm-level uncertainty : domestic versus cross-border deals

Bai, Ye; Girma, Sourafel; Riaño, Alejandro - 2020

This paper studies the impact of corporate acquisitions - both domestic and cross-border - on the uncertainty faced by acquiring firms. We use data for UK publicly-listed firms from 2004 to 2017 and employ a matching estimator combined with difference-in-differences to control for the endogenous...

Persistent link: https://www.econbiz.de/10012158166

Economic crisis and share price unpredictability : reasons and implications

Fox, Edward G.; Fox, Merritt B.; Gilson, Ronald J. - 2014

of the last 30 years: the extent to which a target board of directors will be allowed to prevent shareholders from …

Persistent link: https://www.econbiz.de/10010259665

Outside Directors and Stock Return Volatility : The Foreign Investor Connection

Jordan, Steven J. - 2012

In this paper we note that unrelated research in the management and finance fields, if combined, makes predictions concerning board reforms in emerging countries. Specifically, outside directors' demographic characteristics that are salient to foreign investors should reduce stock price...

Persistent link: https://www.econbiz.de/10013097547

Managerial Risk Preference and Firm Performance Volatility : New Evidence from Executive Deferred Compensation

Cen, Wei - 2012

Using novel data from executive deferred compensation, this paper presents new evidence on the relationship between CEO risk preference and firm risk (the volatility of firm performance measures such as stock return, earnings and operating cash flows). My results show a negative association...

Persistent link: https://www.econbiz.de/10014170281