Financial leverage changes associated with corporate mergers

By Aloke Ghosh, Prem C. Jain. 2000

240 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/2847ed02ba1650d6859d5825dc884d83227a7428

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Citations in the corpus

Do Firms Have Leverage Targets? Evidence from Acquisitions (2009, unknown): “Ghosh and Jain (2000) document a general increase in leverage following mergers, which they attribute to”
Asset Liquidity and Capital Structure (2009, background): “Ghosh and Jain (2000) also demonstrate that leverage changes after a merger are 16See Shleifer and Vishny (1992) and Pulvino (1999). rather permanent, maintained for all five post-merger years they examine.”
Capital Structure, Profitability and Firm Value: Panel Evidence of Listed Firms in Kenya (2014, unknown): “Some researchers find a positive relationship between debt level and firms’ financial performance (among them, Taub, 1975; Roden and Lewellen, 1999; Champion, 1999; Ghosh and Jain, 2000; Hadlock and James, 2002 and Berger and di Patti, 2006).”
Do Shareholder Rights Affect the Cost of Bank Loans (2009, unknown): “Several empirical studies show that target firm’s leverage increases significantly after the takeover (see Kim and McConnell (1977), Cook and Martin (1991), Warga and Welch (1993), and Ghosh and Jain (2000) as well as Cremers and Nair (2004) for some recent evidence).”
Financial Synergies and the Optimal Scope of the Firm: Implications for Mergers, Spinoffs, and Structured Finance (2007, background): “The merged firm is presumed to have a default cost equal to the size-weighted default costs of the separate 36 Kim and McConnell (1977), Cook and Martin (1991), and Ghosh and Jain (2000) find that leverage increases after mergers.”
The Impact of Leverage on Real Earnings Management (2013, background): “Ghosh and Jain, 2000, claim that leverage increases significantly following mergers due to increase in debt capacity.”
Financing and takeovers (2008, unknown): “As we show in the paper, the financing strategies of ARTICLE IN PRESS 1 Bruner (1988), Ghosh and Jain (2000), and Uysal (2006) show that bidders are significantly less levered before mergers than a control sample of firms and that the bidders' leverage rises significantly after the takeover…”