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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.issued2019en_US
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.en_US
dc.language.isoenen_US
dc.publisherElsevieren_US
dc.subjectMergers and Acquisitionsen_US
dc.subjectHigh Default Risk Biddersen_US
dc.subjectLong-Term Performanceen_US
dc.subjectShort-Term Market Reactionen_US
dc.subjectAgency Conflictsen_US
dc.subjectDistressen_US
dc.titleThe performance of acquisitions by high default risk bidders (Accepted)en_US
dc.identifier.journalJournal of Banking and Financeen_US
dc.contributor.departmentGhent Universityen_US
dc.contributor.departmentCass Business School, City, University of Londonen_US
dc.contributor.departmentSwansea University - School of Managementen_US
vlerick.knowledgedomainAccounting & Financeen_US
vlerick.typearticleArticle in academic journalen_US
vlerick.vlerickdepartmentAFen_US
dc.identifier.vperid99008en_US
dc.identifier.vperid40574en_US


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