An empirical analysis of the impact of mergers and acquisitions involving institutional cross-owners on post-merger bankruptcy risk of acquirers in the United States between 1984 and 2020

• Autor(a) principal: Zheltov, Petr
• Data de Publicação: 2024
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
• Texto Completo: http://hdl.handle.net/10362/176305
• topic: Corporate finance; Mergers and acquisitions (M&A); Institutional investors; Cross-ownership; Bankruptcy risk; Z-score model; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

I study 1858 mergers and acquisitions by US public acquirers between 1984 and 2020 to assess the impact of cross-ownership on post-M&A acquirer bankruptcy risk. Addressing a gap in existing literature, my statistically significant findings indicate that presence of cross ownership and a higher number of cross-owners decrease bankruptcy risk. Notably, risk is elevated with greater cross-ownership levels and larger cross-owner stakes in acquirers, explained by higher asymmetric information. Conversely, bigger cross-owner stakes in targets reduce bankruptcy risk. In conjunction with cross-ownership, greater executive motivation lowers risk, whereas interaction between higher number of cross-owners and monitoring increases post-M&A bankruptcy risk.