Barrett

Barrett, The Honors College at Arizona State University proudly showcases the work of undergraduate honors students by sharing this collection exclusively with the ASU community.

Barrett accepts high performing, academically engaged undergraduate students and works with them in collaboration with all of the other academic units at Arizona State University. All Barrett students complete a thesis or creative project which is an opportunity to explore an intellectual interest and produce an original piece of scholarly research. The thesis or creative project is supervised and defended in front of a faculty committee. Students are able to engage with professors who are nationally recognized in their fields and committed to working with honors students. Completing a Barrett thesis or creative project is an opportunity for undergraduate honors students to contribute to the ASU academic community in a meaningful way.

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The Merger Arbitrage Spread: 2008-2012 Trend and Factors Affecting the Spread

Description
The purpose of this paper serves to act as a continuation of a prior study conducted by Gaurav Jetley and Xinyu Ji explaining the decrease in merger arbitrage spread returns for the time period 1990-2007. Based on further research and analysis, it was concluded the merger arbitrage spread has continued…

The purpose of this paper serves to act as a continuation of a prior study conducted by Gaurav Jetley and Xinyu Ji explaining the decrease in merger arbitrage spread returns for the time period 1990-2007. Based on further research and analysis, it was concluded the merger arbitrage spread has continued to decline for the years 2008-2012. Part of the decline may be explained by a reduction in trading costs associated to merger arbitrage, capacity constraints (given an increase in devoted capital to the merger arbitrage investment strategy with a limited number of deals), as well as decreased risks. The narrowing arbitrage spread can also be attributed to transaction characteristics and their effect on deals' spreads. The findings conclude that a portion of the decline is likely to be permanent, and that investors seeking to invest using the merger arbitrage strategy should consider spread returns from the most recent years and over a shorter time period.
ContributorsKrause, Chase James (Author) / Simonson, Mark (Thesis director) / Aragon, George (Committee member) / Barrett, The Honors College (Contributor) / Department of Finance (Contributor) / W. P. Carey School of Business (Contributor)
Created2014-12