Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

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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.211209.045How 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.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
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
10.2991/assehr.k.211209.045
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.045How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

risenwbib
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  -