We develop a measure of how information events impact investors' expectations of risk. The measure is broadly … simultaneously conveys information on the announcer's expected future cash flows and risk profile. We empirically implement the … forecasting power for firms' risk profiles, costs of capital, and future investments. We further highlight pitfalls of using …

private acquisitions, I find that seller financing and earnouts become more common as information asymmetry increases between … decrease information asymmetry in firm acquisitions. Seller‐financed acquisitions also close faster and at higher prices … which privately held firms mitigate adverse selection that arises from information asymmetry …

. These results highlight the importance of reps in risk allocation, reducing information asymmetry and creating value, but … breach. Parties appear to negotiate reps consistent with the risk allocation necessary in an agreement, utilizing reps to … reduce information asymmetry and create value depending upon the industry, firm volatility, and governing law. Our findings …

terrorism-stricken areas receive lower takeover premium. The latter finding is reflected in lower target firm abnormal returns … likely takeover targets for two years after the terrorist attack, and acquirers from such areas are more likely to buy target …

I identify three sources of risk for the tax shields: two of them associated to the risk of debt and one associated to … the operating risk. I present a set of conditions for defining risky debt associated to cash flow and not to accounting … risk of tax shields is Ku, the unlevered cost of equity …

This article (1) identifies three sources of risk for tax shields (TS): Two of them are associated with debt risk and … one is associated with operating risk. (2) A set of conditions for defining risky debt associated with cash flow, not with … suggests that it is not reasonable to define the risk of TS as measured by a single discount rate, but rather as a mix of debt …

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 …

characterization are bound to yield Bayesianly incorrect generalizations. In the Bayesian way of thinking, information risk impacts the …The properties of information, including "information uncertainty", can be understood only Bayesianly. Common … formulations that define information uncertainty in terms of just statistical "precision" (i.e. sampling variance), or any one …

larger targets. Merging parties attempt to shorten the interim window as risk increases. Firm- and industry-level uncertainty …

private acquisitions, I find that seller financing and earnouts become more common as information asymmetry increases between … decrease information asymmetry in firm acquisitions. Seller-financed acquisitions also close faster and at higher prices … which privately held firms mitigate adverse selection that arises from information asymmetry.* This paper was previously …