Credit supply, post-acquisition performance and financial constraints

Magnus Blomkvist, Karl Felixson

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Sammanfattning

We study the effect of credit supply on the acquisition behaviour of financially constrained (FC) and financially unconstrained (UC) firms. FC firms are likely to conduct acquisitions when credit supply is greater while UC firms can conduct acquisitions whenever a good opportunity arises. We argue that the flexibility unconstrained firms have is valuable. Our empirical results indicate that UC firms outperform FC firms up to 36 months after the acquisition. We also find that increased credit supply increases the probability of conducting mergers and acquisitions (M&As) for FC firms while it has less impact on M&A behaviour of UC firms.
OriginalspråkEngelska
Referentgranskad vetenskaplig tidskriftApplied Economics Letters
Volym25
Utgåva20
Sidor (från-till)1421-1425
Antal sidor5
ISSN1350-4851
DOI
StatusPublicerad - 05.01.2018
MoE-publikationstypA1 Originalartikel i en vetenskaplig tidskrift

Nyckelord

  • 511 Nationalekonomi

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