报告主题：Debt Issues around Mergers & Acquisitions

报告人：Song Wang，Department of Finance Saint Xavier University

Chicago, IL 60655

主持人：谢诗蕾 博士（院长助理）

时间：2018年6月28日（星期四）18：30-19：30

举行地点：综合楼802会议室

内容提要:

We investigate a firm’s debt financing choice among bank loans, public debt and non-bank private debt before their merger and acquisition (M&A) investment. We find that firms with above-target leverage tend to pursue public debt financing in lieu of bank debt. We argue these firms are doing so either to circumvent the hold-up problems associated with bank debt, or to avoid bank monitoring. The former will enhance shareholder wealth while the latter destroy shareholder value. We find the three-day merge announcement CARs for highly levered firms are positively associated with bank financing and negatively associated with non-bank financing. This supports the monitoring avoidance argument. As a falsification test, we do not find the same debt financing considerations for the same firms during the post-M&A period.