---
_id: '36060'
abstract:
- lang: eng
  text: 'Merging a sample of 492 merger and acquisition (M&A) announcements from 284
    acquiring firms across Europe and North America with data from 5-year single-name
    credit default swaps (CDSs) written on stock-listed acquiring firms between 2005
    and 2018, the paper at hand empirically analyzes the CDS investors’ risk perceptions
    of M&A announcements using event study methodologies. As a baseline result, we
    provide evidence for significantly positive cumulative average abnormal CDS spread
    changes for both, European and North American acquirers 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. Moreover, results
    from a large variety of sensitivity analyses reveal a number of deal and firm
    characteristics that may explain why CDS investors from our sample expect an increase
    in the acquirers’ credit risk exposures due to forthcoming M&A transactions. '
author:
- first_name: Benjamin
  full_name: Hippert, Benjamin
  last_name: Hippert
- first_name: André
  full_name: Uhde, André
  id: '36049'
  last_name: Uhde
citation:
  ama: Hippert B, Uhde A. <i>CDS Investors’ Risk Perceptions of M&#38;A Announcements</i>.
  apa: Hippert, B., &#38; Uhde, A. (n.d.). <i>CDS Investors’ Risk Perceptions of M&#38;A
    Announcements</i>.
  bibtex: '@book{Hippert_Uhde, title={CDS Investors’ Risk Perceptions of M&#38;A Announcements},
    author={Hippert, Benjamin and Uhde, André} }'
  chicago: Hippert, Benjamin, and André Uhde. <i>CDS Investors’ Risk Perceptions of
    M&#38;A Announcements</i>, n.d.
  ieee: B. Hippert and A. Uhde, <i>CDS Investors’ Risk Perceptions of M&#38;A Announcements</i>.
    .
  mla: Hippert, Benjamin, and André Uhde. <i>CDS Investors’ Risk Perceptions of M&#38;A
    Announcements</i>.
  short: B. Hippert, A. Uhde, CDS Investors’ Risk Perceptions of M&#38;A Announcements,
    n.d.
date_created: 2023-01-11T11:31:54Z
date_updated: 2023-11-17T10:23:54Z
department:
- _id: '186'
- _id: '188'
jel:
- G14
- G34
keyword:
- credit default swaps
- risk perception of CDS investors
- mergers and acquisitions
- event study
language:
- iso: eng
publication_status: unpublished
status: public
title: CDS Investors’ Risk Perceptions of M&A Announcements
type: working_paper
user_id: '36049'
year: '2021'
...