Capital Diversion in European Firms after Merger and Acquisions, 1997/2013
Bibliographic Data
| ID | 10713752 |
|---|---|
| Authors | Jan Hanousek (0009-0006-3997-5931, Central Michigan University, corresponding author), Anastasiya Shamshur (0000-0002-5091-5837, Central Michigan University), Jiri Tresl (0000-0002-1569-651X, Czech Academy of Sciences, Economics Institute) |
| Year | 2017 |
| Volume | 65 |
| Issue | 5 |
| Pages | 546-561 |
| Publication date | 2017-10-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Politická ekonomie (JOURNAL) |
| Journal identifiers | ISSN: 0032-3233 • E-ISSN: 2336-8225 |
| Publisher | Prague University of Economics and Business (PUBLISHER • CZ) |
| DOI | 10.18267/j.polek.1161 |
| OpenAlex | W2766283806 |
| Language | EN |
| References cited | 19 |
This study examines the diversion of funds in M&A deals, using over 7,500 deals from core European countries for the period from 1997 to 2013, sourced from the Zephyr database. Theoretical predictions suggest that in M&A deals acquiring companies may use the target's assets as collateral to raise funds which is then diverted within the internal capital markets. Our results do not indicate an increase in leverage burdens of target firms. While we do not find evidence that assets are used as collateral to raise financing, our results point to indirect clues that funds are diverted away from the target company after the acquisition
Business · Capital (architecture) · Collateral · Economics · Financial system · Leverage (statistics) · Monetary economics · Point (geometry) · Corporate Finance and Governance · Finance · Firm Innovation and Growth · Private Equity and Venture Capital
| Citation velocity | historical |
|---|---|
| Highly cited | No |