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https://doi.org/10.1080/1331677X.2017.1355259

Risk arbitrage in emerging Europe: are cross-border mergers and acquisition deals more risky?

Alin Marius Andrieș orcid id orcid.org/0000-0002-4415-4197 ; Finance and Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, Iasi, Romania
Cătălina Alexandra  Vîrlan ; Finance and Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, Iasi, Romania


Puni tekst: engleski pdf 1.906 Kb

str. 1367-1389

preuzimanja: 645

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Sažetak

Speculation spread in mergers and acquisitions (M&A), measured as
the percentage difference between the offer price and the closing
stock price of a target the day after the announcement, is the starting
point for risk arbitrage returns, a topic receiving greater consideration
both in practice and in the empirical literature. Reflecting the degree
of risk in merger arbitrage investments, we found no significant
difference between the speculation spread in domestic and foreign
Polish deals, between 2000 and 2013. However, we found higher
returns for cross-border portfolio, therefore investors seem more
pessimistic with regards to the expected risk in cross-border deals.
Also, on average, deal spreads do not correctly reflect the level of risk
in merger arbitrage strategies with Polish targets.

Ključne riječi

Mergers and acquisitions (M&A); risk arbitrage; financial crisis

Hrčak ID:

193188

URI

https://hrcak.srce.hr/193188

Datum izdavanja:

1.12.2017.

Posjeta: 923 *