We examine the role of acquirers’ familiarity with targets’ significant downside risks in M&A. We introduce a measure of a firm’s familiarity with another firm’s business downsides using similarity of their risk factor descriptions. We first show that this measure is distinct from...

Supplier diversification is often adopted to mitigate the negative impact of supply uncertainty and increased tariffs in global supply chains. In this study, we consider a decentralized global supply chain that consists of a domestic buyer, a reliable oversea supplier with a high tariff rate...