کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5093159 | 1478435 | 2016 | 22 صفحه PDF | دانلود رایگان |
- We find that bidders with political connections are more likely to acquire targets and avoid regulatory delay or denial.
- The merger premium paid increases with political connectedness.
- The announcement period returns show investors recognize bids by connected acquirers are more likely to create firm value
- Connected bidders make more bids and bid on larger targets.
- Connected acquirers also enjoy superior post-merger financial and operating performance.
This study examines how the appointment of former politicians and regulators to boards of directors or management teams influences corporate acquisition activity and performance. We find that bidders with political connections are more likely to acquire targets and avoid regulatory delay or denial. The merger premium paid increases with political connectedness. The announcement period returns show that investors recognize that bids by politically connected acquirers are more likely to create firm value. Connected bidders make more bids and bid on larger targets. Connected acquirers also enjoy superior post-merger financial and operating performance.
Journal: Journal of Corporate Finance - Volume 41, December 2016, Pages 81-102