Article Details

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

Oleh   Jess Cornaggia [-]
Kontributor / Dosen Pembimbing : Jay Yin Li
Jenis Koleksi : Jurnal elektronik
Penerbit : FMIPA - Matematika
Fakultas : Fakultas Matematika dan Ilmu Pengetahuan Alam (FMIPA)
Subjek : Financial economics
Kata Kunci : M&A, Access to finance, Financial synergy
Sumber : Journal of Financial Economics 131 (2019) 232–250
Staf Input/Edit : Dwi Ary Fuziastuti   Ena Sukmana
File : 1 file
Tanggal Input : 2019-03-04 08:59:41

We examine synergies in mergers and acquisitions (M&As) generated by firms’ compara- tive advantages in access to bank finance. We find robust evidence that greater access to bank finance increases firms’ attractiveness as acquisition targets. Targets’ comparative ad- vantage 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.