haku: @indexterm CAPITAL STRUCTURE OF COMPANIES / yhteensä: 353
viite: 147 / 353
| Tekijä: | Israel, R. |
| Otsikko: | Capital structure and the market for corporate control : the defensive role of debt financing |
| Lehti: | Journal of Finance
1991 : SEP, VOL. 46:4, p. 1391-1409 |
| Asiasana: | COMPANY CONTROL CAPITAL STRUCTURE OF COMPANIES DEBT MANAGEMENT |
| Kieli: | eng |
| Tiivistelmä: | The optimal debt level balances a decrease in the probability of acquisition against a higher share of the synergy for the target's shareholders. This leads to the following implications: (1) the probability of firms becoming acquisition targets decreases with their leverage; (2) acquirers' share of the total equity gain increases with targets' leverage; (3) when acquisitions are initiated, targets' stock price, targets debt value, and acquirers' firm value increase, and (4) during the acquisition, target firms' stock price changes further; the expected change is zero and the variance decreases with targets' debt level. |
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