changes in risk arbitrageurs' holdings surrounding the time of an announcement, whose ability to predict deal outcomes is … announcement returns. A trading strategy that involves investing in target firms with a low degree of failure risk, as predicted by … cast doubt on the notion that arbitrage spreads represent a deal's risk of failure as perceived by investors …

, which can impose significant costs on firms. Thus, the extent to which tax avoidance increases firm risk is unclear. This … paper re-examines the relation between tax avoidance and firm risk using latent class mixture models, which identify sub … exhibits a positive association between tax avoidance and firm risk, 43 percent exhibits a negative association, and 38 percent …

Finance Sector creating an 11th sector. We examine the return and risk effect of the creation of the new sector. We find a … divergence in the risk of firms in the new sector and the non-S&P eREITs relative to the market. The eREITs in the S&P 500 Index … maintained a lower risk, while the eREITs not in the Index increased in risk …

cationstrategy and finds that when costs of uncertainty are removed, small banks hedge 97-120% moreinterest rate risk while mortgage …

asset prices reflect both covariance risk and misperceptions of firmsapos prospects, and in which arbitrageurs trade against … mispricing. In equilibrium, expected returns are linearly related to both risk and mispricing measures (e.g., fundamental …

-looking market-based risk measures provide significant explanatory power in predicting net leverage changes in excess of accounting …, leverage, and distress risk puzzles, firms with lower predicted leverage increases are riskier but earn lower abnormal returns …