| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP14911 |
| DP14911 M&A Activity and the Capital Structure of Target Firms | |
| Mark Flannery; Jan Hanousek; Anastasiya Shamshur | |
| 发表日期 | 2020-06-20 |
| 出版年 | 2020 |
| 语种 | 英语 |
| 摘要 | Using a large sample of European acquisitions, we find that acquired firms substantially close the gap between their actual and optimal leverage ratios. The bulk of this adjustment occurs quite rapidly – within a year of the acquisition. The typical over-levered firm adjusts its debt-to-assets ratio from 34.4% in the year before acquisition to 20% in the year after. (The adjustment is smaller, but still quite rapid, for targets that had been under-leveraged.) These adjustments occur primarily through debt issuances or retirements. We also investigate whether target firms’ pre-merger leverage contributes to the probability of them being acquired. We find that firms further away from their optimal leverage are more likely to be acquired: for an average firm, an increase in the absolute leverage deviation from 1% to 10% of total assets increases the probability of being acquired by 4.1% to 5.6% (The larger effect applies to over-leveraged firms.) Overall, our results provide support for the trade-off theory of capital structure and suggest that financial synergies have a significant role in the typical European acquisition decision. |
| 主题 | Financial Economics |
| 关键词 | M&a Target capital structure Leverage deficit |
| URL | https://cepr.org/publications/dp14911 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/543852 |
| 推荐引用方式 GB/T 7714 | Mark Flannery,Jan Hanousek,Anastasiya Shamshur. DP14911 M&A Activity and the Capital Structure of Target Firms. 2020. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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