Journal article
The market for corporate control and the cost of debt
Abstract
How do bondholders view the existence of an open market for corporate control? Between 1985 and 1991, 30 states in the U.S. enacted business combination (BC) laws, raising the cost of corporate takeovers. Relying on these exogenous events, we estimate the influence of the market for corporate control on the cost of debt. We identify different channels through which an open market for corporate control can benefit or harm bondholders: a …
Authors
Qiu J; Yu F
Journal
Journal of Financial Economics, Vol. 93, No. 3, pp. 505–524
Publisher
Elsevier
Publication Date
September 2009
DOI
10.1016/j.jfineco.2008.10.002
ISSN
0304-405X