search query: @author Bharadwaj, A. / total: 2
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| Author: | Bharadwaj, A. Shivdasani, A. |
| Title: | Valuation effects of bank financing in acquisitions |
| Journal: | Journal of Financial Economics
2003 : JAN, VOL. 67:1, p. 113-148 |
| Index terms: | Banks Mergers Financial structure |
| Language: | eng |
| Abstract: | In a sample of cash tender offers 1990-1996, baks extend financing in 70 % of the tender offers and finance the entire tender offer in half of these takeovers. Bank financing of tender offers is more likely when internal cash reserves are low. Acquisitions that are entirely financed by banks are associated with large and significantly positive acquirer announcement returns. Announcement returns are also positevely related to the fraction of the acquisition value financed by bank debt. The results suggest that bank debt performs an important certification and monitoring role for acquirers in tender offers. |
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