Merger Arbitrage’s Performance in Different Regions After Covid-19

Yuran Liang; Chenbin Zhang; Lulei Zhang

doi:10.2991/assehr.k.211209.045

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Merger Arbitrage’s Performance in Different Regions After Covid-19

Authors

Yuran Liang¹^{, †}, Chenbin Zhang²^{, *}^{, †}, Lulei Zhang³^{, †}

¹Finance Department, Jinan University, Guangzhou, China

²Accountancy Department, Bentley University,175 Forest Street, Waltham, MA, 02452, USA

³Finance Department, Rutgers, The State University of New Jersey, New Brunswick, USA

^†

These authors contributed equally.

^*Corresponding author. Email: ZHAN3_CHEN@bentley.edu

Corresponding Author

Chenbin Zhang

Available Online 15 December 2021.

DOI: 10.2991/assehr.k.211209.045 How to use a DOI?
Keywords: Merger Arbitrage Performance; Hedge Fund Strategy; Different regions; Global; after Covid-19
Abstract: Due to different degrees of involvement by governments, Eastern countries have developed distinct financial markets compared to Western financial markets. This article presents the performances of the merger arbitrage strategy in different regional markets, including the United States, Hong Kong, China, Korea, Japan, Mainland China, and Australia. Merger cases after the global outbreak of the Covid-19 were chosen for each region to represent their financial markets. In the analysis, historical data of merger companies’ stock prices were analyzed through various charts, capital asset pricing model, and the average excess return regression model. In addition, qualitative factors, including the market constitution, policy distinction, cultural difference, and instability caused by Covid-19, were discussed. Throughout multi-comparisons of both quantitative and qualitative factors, we found out that Hong Kong’s and American markets are the best markets for investors to apply merger arbitrage strategy. For institutional and individual hedge fund investors, our conclusion will be able to contribute to improving the yield rates of the merger arbitrage strategy.
Open Access: This is an open access article under the CC BY-NC license.

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Volume Title: Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series: Advances in Economics, Business and Management Research
Publication Date: 15 December 2021
ISBN: 978-94-6239-483-4
ISSN: 2352-5428
DOI: 10.2991/assehr.k.211209.045 How to use a DOI?
Open Access: This is an open access article under the CC BY-NC license.

Cite this article

ris enw bib

TY  - CONF
AU  - Yuran Liang
AU  - Chenbin Zhang
AU  - Lulei Zhang
PY  - 2021
DA  - 2021/12/15
TI  - Merger Arbitrage’s Performance in Different Regions After Covid-19
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 268
EP  - 274
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.045
DO  - 10.2991/assehr.k.211209.045
ID  - Liang2021
ER  -

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