Merger activity tends to peak at times of high stock prices. I examine the allocation of equity issue proceeds … conditional on the level of merger activity to shed light on the source of this empirical regularity. I find that firms do not … allocate more of the equity proceeds raised in high merger times to increase debt repayment or to increase equity payouts. This …

is in regards to the Pecking Order Theory, and the second one concerns the Method-of-Payment Hypothesis. Both of these … Theory, because managers are deeply motivated to select cash payments when they have an extensive amount of financial slack …

after merger announcement, the passage of time is informative about the probability that the merger will ultimately complete …As illustrated in the tale of "the dog that did not bark," the absence of news and the passage of time often contain … consistent with a behavioral model of underreaction to the passage of time and cannot be explained by changes in risk or …

after merger announcement, the passage of time is informative about the probability that the merger will ultimately complete …As illustrated in the tale of “the dog that did not bark,” the absence of news and the passage of time often contain … consistent with a behavioral model of underreaction to the passage of time and cannot be explained by changes in risk or …

after merger announcement, the passage of time is informative about the probability that the merger will ultimately complete …As illustrated in the tale of "the dog that did not bark," the absence of news and the passage of time often contain … consistent with a behavioral model of underreaction to the passage of time and cannot be explained by changes in risk or …