The value of access to finance: Evidence from M&As

• 成果类型: Article
• 署名作者: Cornaggia, Jess; Li, Jay Yin
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; City University of Hong Kong; University of North Carolina; University of North Carolina Greensboro
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2018.09.003
• 发表日期: 2019
• 页码: 232-250
• 关键词: M&A; Access to finance; Financial synergy

摘要

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. (C) 2018 Published by Elsevier By.