exert a large and persistent effect on the volatility of stock returns of acquirers and that this response is crucially …-level uncertainty is characterized by a pecking order: the announcement of a domestic takeover leads to a reduction in the uncertainty … - engender a positive response in acquirers' volatility. Our results suggest that acquisitions affect uncertainty because they …

We examine the interaction between funds implementing hedge and merger arbitrage strategies and a set of traditional … ability of these funds by estimating hedge ratios and optimal portfolio weights. Taking a short position in the volatility of …

"This paper examines the impact of mergers on default risk, finding that, on average, a merger increases the default … prior to a merger announcement. We also demonstrate higher levels of default risk are not accompanied by higher post- merger … risk of the acquiring firm. This is surprising for two reasons: risk reduction is among the reasons commonly cited for …