Bondholder Wealth Effects in Mergers and Acquisitions: New Evidence from the 1980s and 1990s

By Matthew T. Billett, T. D. King, David C. Mauer. 2004

329 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/7fbf45fddd53fa9a3ed8ee31ea8801b29e073412

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Citations in the corpus

Does Corporate Governance Matter to Bondholders? (2005, methodology): “The database contains data on over 10,000 traded bonds from 1990 to 1998 and is commonly used in the fixed income literature (Anderson, Mansi, and Reeb, 2003; Maxwell and Stephens, 2003; Billett, King, and Mauer, 2004).”
Does Customer Satisfaction Matter to Investors? Findings from the Bond Market (2009, methodology): “The database contains data on more than 10,000 traded bonds from 1990 to 1998 and is commonly used in the fixed-income literature (see Anderson, Mansi, and Reeb 2003; Billett, King, and Mauer 2004; Maxwell and Stephens 2003).”
Corporate Governance and the Cost of Debt: Evidence from Director Limited Liability and Indemnification Provisions (2011, neutral): “Taking on low-risk projects or engaging in conglomerate mergers, however, may benefit bondholders due to their concave payoff structure and the coinsurance effect associated with diversified acquisitions (Billett et al., 2004).”
The Challenge of Integration: A Review of the M&A Integration Literature (2017, background): “The reason for this discrepancy is probably that the complexity of the integration process does not lend itself easily to large-scale, cross-case study designs, which are the cornerstone of the finance approach to M&As (e.g. Billett et al. 2004; Luo 2005).”
Financial Synergies and the Optimal Scope of the Firm: Implications for Mergers, Spinoffs, and Structured Finance (2007, background): “48 Billett, King, and Maurer (2004) report significant excess returns to target bondholders and negative excess returns to acquirers’ bonds at the time of merger announcements.”
Mergers increase default risk (2011, result): “Billett et al. (2004) conduct a similar study, finding, on average, a statistically significant but relatively small decline in the price of the acquirer’s bonds following merger announcements.”
The Market for Corporate Control and the Cost of Debt (2009, background): “This result is consistent with Billett, King, and Mauer (2004)'s ndings based on actual takeovers.”