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dc.contributor.authorBonaime, Alice
dc.contributor.authorGulen, Huseyin
dc.contributor.authorIon, Mihai
dc.date.accessioned2018-10-10T22:57:43Z
dc.date.available2018-10-10T22:57:43Z
dc.date.issued2018-09
dc.identifier.citationBonaime, A., Gulen, H., & Ion, M. (2018). Does policy uncertainty affect mergers and acquisitions?. Journal of Financial Economics, 129(3), 531-558. https://doi.org/10.1016/j.jfineco.2018.05.007en_US
dc.identifier.issn0304405X
dc.identifier.doi10.1016/j.jfineco.2018.05.007
dc.identifier.urihttp://hdl.handle.net/10150/630112
dc.description.abstractPolitical and regulatory uncertainty is strongly negatively associated with merger and acquisition activity at the macro and firm levels. The strongest effects are for uncertainty regarding taxes, government spending, monetary and fiscal policies, and regulation. Consistent with a real options channel, the effect is exacerbated for less reversible deals and for firms whose product demand or stock returns exhibit greater sensitivity to policy uncertainty, but attenuated for deals that cannot be delayed due to competition and for deals that hedge firm-level risk. Contractual mechanisms (deal premiums, termination fees, MAC clauses) unanimously point to policy uncertainty increasing the target's negotiating power. Published by Elsevier B.V.en_US
dc.language.isoenen_US
dc.publisherELSEVIER SCIENCE SAen_US
dc.relation.urlhttps://linkinghub.elsevier.com/retrieve/pii/S0304405X18301338en_US
dc.rightsPublished by Elsevier B.V.en_US
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/
dc.subjectMergers and acquisitionsen_US
dc.subjectPolicy uncertaintyen_US
dc.subjectReal optionsen_US
dc.titleDoes policy uncertainty affect mergers and acquisitions?en_US
dc.typeArticleen_US
dc.contributor.departmentUniv Arizona, Eller Coll Managementen_US
dc.identifier.journalJOURNAL OF FINANCIAL ECONOMICSen_US
dc.description.note36 month embargo; published online: 16 May 2018en_US
dc.description.collectioninformationThis item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at repository@u.library.arizona.edu.en_US
dc.eprint.versionFinal accepted manuscripten_US
dc.source.journaltitleJournal of Financial Economics
dc.source.volume129
dc.source.issue3
dc.source.beginpage531
dc.source.endpage558


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