2017
DOI: 10.1080/1331677x.2017.1355259
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Risk arbitrage in emerging Europe: are cross-border mergers and acquisition deals more risky?

Abstract: 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 201… Show more

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Cited by 6 publications
(1 citation statement)
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“…It was found that arbitrage investments in cross-border mergers are more profitable [11,12]. To reduce the level of risk, it is recommended to account for transaction costs.…”
Section: Introductionmentioning
confidence: 99%
“…It was found that arbitrage investments in cross-border mergers are more profitable [11,12]. To reduce the level of risk, it is recommended to account for transaction costs.…”
Section: Introductionmentioning
confidence: 99%