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dc.contributor.authorBruyland, Evy
dc.contributor.authorLasfer, Meziane
dc.contributor.authorDe Maeseneire, Wouter
dc.contributor.authorSong, Wei
dc.date.accessioned2019-02-11T07:59:19Z
dc.date.available2019-02-11T07:59:19Z
dc.date.issued2019
dc.identifier.issn0378-4266
dc.identifier.urihttp://hdl.handle.net/20.500.12127/6138
dc.description.abstractWe investigate the takeover strategies of high default risk acquirers and their value impact. We find that these bidders select bigger, less profitable and unrelated targets, pursue transactions during recessions, and pay with shares by offering target shareholders high premiums. Their long-term buy-and-hold returns are extremely negative, and reflect fundamentally their substantial drop in profitability combined with high leverage. We show that the well-established long-run under performance of acquiring firms is largely driven by this sub-set of acquirers. The results are similar when we use alternative measures of default risk and performance, and a global sample of non-US bidders.
dc.language.isoen
dc.publisherElsevier
dc.subjectMergers and Acquisitions
dc.subjectHigh Default Risk Bidders
dc.subjectLong-Term Performance
dc.subjectShort-Term Market Reaction
dc.subjectAgency Conflicts
dc.subjectDistress
dc.titleThe performance of acquisitions by high default risk bidders (Accepted)
dc.identifier.journalJournal of Banking and Finance
dc.contributor.departmentGhent University
dc.contributor.departmentCass Business School, City, University of London
dc.contributor.departmentSwansea University - School of Management
vlerick.knowledgedomainAccounting & Finance
vlerick.typearticleArticle in academic journal
vlerick.vlerickdepartmentAF
dc.identifier.vperid99008
dc.identifier.vperid40574


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