报告主题：Debt Issues around Mergers &Acquisitions

报告人：Song Wang，Departmentof 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 bankloans, public debt and non-bank private debt before their merger andacquisition (M&A) investment. We find that firms with above-target leveragetend to pursue public debt financing in lieu of bank debt. We argue these firmsare doing so either to circumvent the hold-up problems associated with bankdebt, or to avoid bank monitoring. The former will enhance shareholder wealthwhile the latter destroy shareholder value. We find the three-day mergeannouncement CARs for highly levered firms are positively associated with bankfinancing and negatively associated with non-bank financing. This supports themonitoring avoidance argument. As a falsification test, we do not find the samedebt financing considerations for the same firms during thepost-M&A period.