Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 16, 2016 erstellt
Description:
Firm value can change substantially between the time deal terms for a public target are set and closing, risking renegotiation or termination. We find increases in market volatility decrease subsequent deal activity, but only for public targets subject to an interim period. The effect is strongest when volatility is highest, for deals taking longer to close, and for larger targets. Merging parties attempt to shorten the interim window as risk increases. Firm- and industry-level uncertainty measures reveal similar findings, ruling-out an unobserved macro variable. We conclude interim uncertainty contributes to understanding the timing and intensity of public firms' merger activity