Journal article
Determinants and implications of arbitrage holdings in acquisitions
Journal of financial economics, v 77(3), pp 605-648
01 Sep 2005
Abstract
We find evidence of passive and active roles for arbitrageurs in the acquisition process. Using a simultaneous-equation framework to recognize endogeneity, we analyze 608 acquisition bids over the 1992–1999 period. Our results indicate that the change in arbitrage holdings is greater in successful offers. However, changes in arbitrage holdings are also related to the probability of success, bid premia, and arbitrage returns. In addition, the change in arbitrage holdings is positively associated with both revision returns and the occurrence of subsequent bids. Overall, we find that merger arbitrageurs play an important role in the market for corporate control.
Metrics
Details
- Title
- Determinants and implications of arbitrage holdings in acquisitions
- Creators
- Jim Hsieh - George Mason UniversityRalph A. Walkling - Fisher College
- Publication Details
- Journal of financial economics, v 77(3), pp 605-648
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:000231778600004
- Scopus ID
- 2-s2.0-23844474015
- Other Identifier
- 991021881392004721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance
- Economics