Chartejee and Yan's research has showed:
A) Mergers don't pay
B) Contingent value rights are used when the parties have asymmetric information
C) Conglomerate mergers are more likely to yield negative returns

Question

Quizplus · Accepted Answer

Contingent value rights (CVRs) are often used in mergers and acquisitions as a way to bridge valuation gaps between parties, especially when there is asymmetric information. CVRs provide payments to the sellers if certain predefined conditions are met post-merger, thus addressing the concerns related to information asymmetry.

Chartejee and Yan's Research Has Showed