Stock Recalls As a Source of Informational Advantage Through Short Selling: Empirical Evidence from Mergers and Acquisitions

2018 ◽  
Author(s):  
Richard Schubert ◽  
Jan-Oliver Strych
Keyword(s):  
Mergers And Acquisitions ◽  
Empirical Evidence ◽  
Short Selling ◽  
Informational Advantage

M&A vs. Greenfield

2018 ◽  
pp. 169-185
Author(s):  
Sana Moid
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Mergers And Acquisitions ◽  
Empirical Evidence ◽  
International Market ◽  
Time Effect ◽  
Entry Modes ◽  
Host Countries ◽  
Bidirectional Relationship ◽  
The Right

The chapter has raised two critically important questions. First, is the M&A boom a one-time effect of privatization, or is it likely to be followed by a rise in Greenfield investment? Second, do these two types of FDI mode have different macroeconomic consequences in terms of aggregate investment and growth? The main purpose of this chapter is to analyze the two entry modes, mergers and acquisitions and Greenfield investment, specifically, and to present a comparative view of the same and how it leads to the economic growth of a nation. It is concluded that one should choose the right mode according to the different situation about the firms in the international market. The present chapter also concludes that Greenfields and M&As do have a positive homogenous effect on growth. Additionally, the enhancement of human capital is an important condition for the host countries to derive the maximum benefits from Greenfields and M&As. Also, there is empirical evidence of a two-way linkage between FDI and growth. However, the bidirectional relationship exists only for the M&A's growth nexus.

scholarly journals Equity Short Selling and the Cost of Debt

2020 ◽  
Vol 13 (2) ◽  
pp. 41-53
Author(s):  
Ali Nejadmaleyeri ◽  
Bilal Erturk
Keyword(s):  
Empirical Evidence ◽  
Corporate Bonds ◽  
Equity Markets ◽  
Short Selling ◽  
Credit Spreads ◽  
Cost Of Debt ◽  
Short Sales ◽  
Pertinent Information ◽  
Short Interest ◽  
The Cost

Empirical evidence suggests that short sales have pertinent information about firm fundamentals. If so, then information from short selling in liquid equity markets can be informative for infrequently traded corporate bonds. The adverse information conveyed by short interest should mean higher cost of debt. Using a large sample of corporate bonds, we examine whether lagged equity short interest affects credit spreads. Highly shorted firms do experience wider credit spreads in the subsequent months. Moreover, the increase in short interest leads to higher credit spreads. Short interest thus seems to contain adverse information about firm fundamentals that can prove useful to bond investors. 

scholarly journals Mergers and acquisitions: A review of the literature

2006 ◽  
Vol 3 (3) ◽  
pp. 55-59 ◽  
Author(s):  
Raymond A. K. Cox
Keyword(s):  
Corporate Governance ◽  
Literature Review ◽  
Mergers And Acquisitions ◽  
Empirical Evidence ◽  
Operating Performance ◽  
Review Of The Literature ◽  
Before And After ◽  
And Control

This paper is a selected literature review of the theories and empirical evidence on mergers and acquisitions. Initially, the fundamental factors, and the underlying theories, causing mergers is explored. Subsequently, the empirical evidence is examined on: (1) the operating performance of the acquirers and the acquired firms before and after the merger, (2) stockholder wealth impact, (3) form of payment used to complete the acquisition, (4) conglomerate mergers, and (5) corporate governance affecting the firm’s ownership and control.

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