Graduation Year
Spring 2013
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics-Accounting
Reader 1
Eric Hughson
Terms of Use & License Information
Rights Information
© 2013 Matthew Ellis
Abstract
Previous research on the coinsurance effect solely focuses on the coinsurance of corporate debt and ignores the possibility that a combined entity’s assets may coinsure other financial obligations with debt-like characteristics. The present study examines the breadth of the coinsurance effect by testing whether the theory extends to labor obligations. Using an event study methodology, I analyze merger events between the 2000-2012 period. I investigate how acquirer shareholders are affected by the coinsurance effect during this period by examining acquirer common stock returns at the announcement date of the merger event. My results do not produce significant evidence to suggest that the coinsurance effect can be extended to include labor obligations. Moreover, no significant evidence of the coinsurance effect is discovered in the analysis.
Recommended Citation
Ellis, Matthew, "An Examination of the Breadth of the Coinsurance Effect: The Effect of Labor Leverage on Acquirer Returns" (2013). CMC Senior Theses. 616.
https://scholarship.claremont.edu/cmc_theses/616
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
