【金融高端论坛】Banker Lenders as Matchmakers?

【本期主题】 Banker Lenders as Matchmakers? When Acquirers and Targets Share a Common Lender We investigate the effect of same creditors shared by the acquirer and the target in M&A transactions on acquisition returns. We find that the common lead creditor connected transactions have higher synergy and higher announcement returns for the acquirer firms while experience lower acquisition premium. We find that there is no significant larger operating performance improvement after the acquisition for common creditor connected transactions while the cost of loan has a significant larger decrease after the acquisition for common lead creditor connected transactions. In addition, we find that there are lower fees for investment banks in the common creditor connected transactions. Our results suggest lending relationships with creditors for the acquirer and the target affect acquisition outcomes.