Adjustment of behavior to maintain risk, known as risk homeostasis, has previously been studied in a variety of … psychological, health, social and economic contexts. This paper examines the evidence for risk homeostasis in corporate financial …-bidding peer firms prior to M&As, relative risk levels subsequently return to original levels. We argue this pattern is consistent …

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 … identifies a merger arbitrage risk factor that is superior to market beta in explaining the risks assumed by a merger arbitrage …

-level governance risk for the acquirer. We find a greater use of stock as the method of payment in cross-border deals involving targets … from countries with high governance risk relative to that in the acquirer's country. This increased use of stock in riskier …

foreign firms' inbound acquisitions, especially when the host country poses greater expropriation risk. An upcoming home …

We use data from the past 30 years of takeover activity in the U.S. banking industry to test competing neoclassical and … misvaluation merger theories. Test results are consistent with evidence in the literature that merger activity is significantly … misvaluation reflect a rise in industry-wide risk taking and that increases in risk originate from changes in industry structure …

After the completion of a merger and acquisition (M&A), a number of factors may affect the performance, probability of … default and actual delisting of the acquirer. In this paper, we present a simple methodology for identifying risk factors and … then proceed to identify and investigate deal-related factors which may pose a risk to the survival of the acquirer after a …

changes in risk arbitrageurs' holdings surrounding the time of an announcement, whose ability to predict deal outcomes is … be renegotiated, to feature slower completion times, and to fail even after controlling for merger arbitrage spreads and … announcement returns. A trading strategy that involves investing in target firms with a low degree of failure risk, as predicted by …

-level uncertainty is characterized by a pecking order: the announcement of a domestic takeover leads to a reduction in the uncertainty …

-level uncertainty is characterized by a pecking order: the announcement of a domestic takeover leads to a reduction in the uncertainty …