Strategic merger decisions across business cycles: Evidence from bidders' time-varying appetite for operating leverage

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• 作者：Chune Young Chung^a ; ^{bizfinance@cau.ac.kr} ; Seok-Kyun Hur^a ; Kainan Wang^b
• 关键词：G32 ; G34
• 刊名：International Review of Economics & Finance
• 出版年：2017
• 出版时间：January 2017
• 年：2017
• 卷：47
• 期：Complete
• 页码：143-158
• 全文大小：357 K
• 卷排序：47

文摘

We study bidders' appetite for their targets' operating leverage. We develop a method to estimate a firm's expected operating leverage. Whether the appetite varies throughout the business cycle is examined. The appetite is time-varying and important on merger decisions. Time-varying benefits and costs of operating leverage are pronounced in mergers.