Ge, Li; Veld, Chris; Zhang, Xiangpei - 2023
Regretful merger arbitrageurs may rush to sell target stocks for ongoing mergers and acquisitions when they expect a …. For ongoing mergers and acquisitions, we find a negative relation between the takeover premium and the target stock price … crash risk. The channel goes through an opinion divergence among arbitrageurs on the deal’s success rate. When the takeover …