Stock Volatility Negatively Impacts Merger Activity

Stock price volatility impacts merger activity in several respects, including dampening the merger activity itself, is the conclusion of a new report.

When stock volatility is on the rise, this negatively impacts merger activity, the research paper “The Real Effects of Uncertainty on Merger Activity” found. The paper was authored by Vineet Bhagwat from the Lundquist College of Business at the University of Oregon; Robert Damb from the Department of Management, United States Air Force Academy and Jarrad Harford at the Foster School of Business, University of Washington.

Volatility negatively influences investment

The research is unique from three standpoints. First, it demonstrates a specific channel through which volatility negatively influences investment,...