Impact of Conducting Mergers and Acquisitions on Relieving Financial Constraint Based on the Evidence from Chinese Listed Companies
Yunhe Deng, Jian Wu
Available Online December 2016.
- https://doi.org/10.2991/emle-16.2017.6How to use a DOI?
- financial constraint; M&A; cash flow; Tobin Q
- This paper studies the relationship between M&A and relieving financial constraint. This paper hypothesizes that M&A transactions can relieve the financial constraint of firm. It models the relation between investment expenditure and internal cash flow. The extent to relieved financial constraint is captured by sensitivity of investment to interaction term between cash flow and dummy MA. Study empirically tests the sensitivities by using 150 Chinese listed companies who conducted M&A transactions during 2011 to 2014.using both Eviews 8 and SPSS 17.0 for data analysis and processing, the conclusion is obtained that the financial constraint is relieved after conducting M&A.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Yunhe Deng AU - Jian Wu PY - 2016/12 DA - 2016/12 TI - Impact of Conducting Mergers and Acquisitions on Relieving Financial Constraint Based on the Evidence from Chinese Listed Companies BT - 2016 2nd International Conference on Economy, Management, Law and Education (EMLE 2016) PB - Atlantis Press SP - 29 EP - 35 SN - 2352-5428 UR - https://doi.org/10.2991/emle-16.2017.6 DO - https://doi.org/10.2991/emle-16.2017.6 ID - Deng2016/12 ER -