CDS investors’ risk perceptions of M&A announcements.

B. Hippert, A. Uhde, CDS Investors’ Risk Perceptions of M&A Announcements. , 2021.

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Working Paper | English
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Hippert, Benjamin; Uhde, AndréLibreCat
Abstract
We merge a sample of 492 merger and acquisition (M&A) announcements from 284 acquiring firms across North America and Europe with data from 5-year single-name credit default swaps (CDSs) that are written on stock-listed acquiring firms between 2005 and 2018. Subsequently, we empirically analyze the CDS investors’ risk perception of M&A announcements using event study methodologies. As a baseline finding, we provide evidence for significantly positive cumulative average abnormal CDS spread changes suggesting that CDS investors perceive an increase in the acquiring firms’ credit risk exposures due to M&A announcements. Our baseline finding holds under several robustness checks, especially when controlling for the robustness of the empirical design as well as regional and sectoral differences. Moreover, results from a large variety of sensitivity analyses including deal and firm characteristics provide a deeper insight into the driving factors of CDS investors’ risk perceptions of M&A announcements.
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Hippert B, Uhde A. CDS Investors’ Risk Perceptions of M&A Announcements. .; 2021.
Hippert, B., & Uhde, A. (2021). CDS investors’ risk perceptions of M&A announcements. .
@book{Hippert_Uhde_2021, title={CDS investors’ risk perceptions of M&A announcements. }, author={Hippert, Benjamin and Uhde, André}, year={2021} }
Hippert, Benjamin, and André Uhde. CDS Investors’ Risk Perceptions of M&A Announcements. , 2021.
B. Hippert and A. Uhde, CDS investors’ risk perceptions of M&A announcements. . 2021.
Hippert, Benjamin, and André Uhde. CDS Investors’ Risk Perceptions of M&A Announcements. . 2021.

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