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dc.contributor.authorBruyland, Evy
dc.contributor.authorDe Maeseneire, Wouter
dc.date.accessioned2017-12-02T15:00:08Z
dc.date.available2017-12-02T15:00:08Z
dc.date.issued2016
dc.identifier.doi10.1111/jbfa.12210
dc.identifier.urihttp://hdl.handle.net/20.500.12127/5603
dc.description.abstractExisting research shows that bidder default risk increases following acquisitions due to a rise in post-acquisition leverage and managerial risk-taking actions offsetting the potential for asset diversification. This study examines whether the risk effects of acquiring distressed targets are fundamentally different and investigates possible explanations for any dissimilarities. Bidders often acquire relatively smaller distressed targets in domestic and related industries and have a higher initial target stake and more financial flexibility, thereby minimizing risk exposure. Controlling for several characteristics of bidder investment behaviour in both types of deals, however, we find that the increase in bidder default risk is substantially larger when acquiring distressed firms.
dc.language.isoen
dc.subjectMergers and Acquisitions
dc.subjectDistress
dc.subjectDefault Risk
dc.subjectVolatility
dc.subjectRisk Factors
dc.subjectFinancial Distress
dc.subjectCorporate Governance
dc.subjectDebt Capacity
dc.titleThe risk effects of acquiring distressed firms
dc.identifier.journalJournal of Business Finance and Accounting
dc.source.volume43
dc.source.issue9/10
dc.source.beginpage1297
dc.source.endpage1324
vlerick.knowledgedomainAccounting & Finance
vlerick.typearticleJournal article with impact factor
vlerick.vlerickdepartmentA&F
dc.identifier.vperid99008
dc.identifier.vperid40574
dc.identifier.vpubid6897


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