MARC Record from Library of Congress

LEADER: 01967cam a22003137a 4500
001 2006620848
003 DLC
005 20080110170234.0
007 cr |||||||||||
008 061113s2006 ilu sb f000 0 eng
010 $a 2006620848
040 $aDLC$cDLC
050 00 $aHG2401
100 1 $aFurfine, Craig.
245 10 $aMergers and risk$h[electronic resource] /$cCraig H. Furfine, Richard J. Rosen.
260 $a[Chicago, Ill.] :$bFederal Reserve Bank of Chicago,$c[2006]
490 1 $aWorking paper series ;$vWP-2006-09
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 11/13/2006.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"This paper examines the impact of mergers on default risk, finding that, on average, a merger increases the default risk of the acquiring firm. This is surprising for two reasons: risk reduction is among the reasons commonly cited for mergers, and asset diversification should reduce default risk unless the newly-merged firm takes some action to increase risk. We associate the risk increase with mergers satisfying one of a trifecta of conditions related to agency problems: mergers financed with stock, acquirers with a high market- to-book ratio, and acquirers with poor stock price performance prior to a merger announcement. We also demonstrate higher levels of default risk are not accompanied by higher post- merger returns"--Federal Reserve Bank of Chicago web site.
650 0 $aConsolidation and merger of corporations.
650 0 $aRisk management.
700 1 $aRosen, Richard Joseph.
710 2 $aFederal Reserve Bank of Chicago.$bResearch Dept.
830 0 $aWorking paper series (Federal Reserve Bank of Chicago. Research Dept. : Online) ;$vWP-2006-09.
856 40 $uhttp://www.chicagofed.org/economic_research_and_data/wp_abstract.cfm?pubsID=800