This dissertation comprises five studies analyzing daily stock returns of listed firms. Studies
one and two shed light on corporate diversification through M&A and how related risk dynamics
affect shareholder wealth. Carrying over the risk analysis methodology 'GARCH' to external
events in studies three and four the author individually scrutinizes the adverse implications
of bank failures and bailouts in the 2007-2009 financial crisis. Finding opposing return shocks
he identifies the limits of the 'symmetric' GARCH. As observed of the behavior of stock return
data volatility reacts asymmetrically to positive and negative return shocks. The advanced
EGARCH incorporates this so called 'leverage effect'. Applying the EGARCH in his final study
the author can simultaneously scrutinize the adverse bank events with an appropriate
econometric foundation.
