The value of access to finance: Evidence from M&As
We examine synergies in mergers and acquisitions (M&As) generated by firms’ comparative advantages in access to bank finance. We find robust evidence that greater access to bank finance increases firms’ attractiveness as acquisition targets. Targets’ comparative advantage in bank finance improve...
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| Veröffentlicht in: | Journal of financial economics 2019-01, Vol.131 (1), p.232-250 |
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| container_end_page | 250 |
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| container_title | Journal of financial economics |
| container_volume | 131 |
| creator | Cornaggia, Jess Li, Jay Yin |
| description | We examine synergies in mergers and acquisitions (M&As) generated by firms’ comparative advantages in access to bank finance. We find robust evidence that greater access to bank finance increases firms’ attractiveness as acquisition targets. Targets’ comparative advantage in bank finance improves bank credit supply and reduces financing costs for the merged firms. These effects are more pronounced for acquirers with greater frictions in accessing bank loans and acquirers with greater growth opportunities. Overall, this paper reveals that targets, not just acquirers, contribute to financial synergies in M&As. |
| doi_str_mv | 10.1016/j.jfineco.2018.09.003 |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 0304-405X |
| ispartof | Journal of financial economics, 2019-01, Vol.131 (1), p.232-250 |
| issn | 0304-405X 1879-2774 |
| language | eng |
| recordid | cdi_proquest_journals_2167011966 |
| source | Elsevier ScienceDirect Journals Complete |
| subjects | Access Access to finance Acquisitions & mergers Bank loans Companies Economic crisis Finance Financial synergy M&A Mergers |
| title | The value of access to finance: Evidence from M&As |
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