Can material asset reorganizations affect acquirers’ debt financing costs? – Evidence from the Chinese Merger and Acquisition Market

Anderson, 2004, Board characteristics, accounting report integrity, and the cost of debt, J. Account. Econ., 37, 315, 10.1016/j.jacceco.2004.01.004 Berger, 2011, Tests of ex ante versus ex post theories of collateral using private and public information, J. Financ. Econ., 100, 85, 10.1016/j.jfineco.2010.10.014 Beyer, 2010, The financial reporting environment: review of the recent literature, J. Account. Econ., 50, 296, 10.1016/j.jacceco.2010.10.003 Bharath, 2008, Accounting quality and debt contracting, Account. Rev., 83, 1, 10.2308/accr.2008.83.1.1 Bhaumik, 2012, Does ownership concentration improve M&A outcomes in emerging markets? Evidence from India, J. Corpor. Finance, 18, 717, 10.1016/j.jcorpfin.2012.04.001 Bhojraj, 2003, Effect of corporate governance on bond ratings and yields: the role of institutional investors and outside directors, J. Business, 76, 455, 10.1086/344114 Bomfim, 2005 Boot, 1991, Secured lending and default risk: equilibrium analysis, policy implications and empirical results, Econ. J., 101, 458, 10.2307/2233552 Cai, 2012, Board connections and M&A transactions, J. Financ. Econ., 103, 327, 10.1016/j.jfineco.2011.05.017 Campa, 2006, M&As performance in the European financial industry, J. Bank. Finance, 30, 3367, 10.1016/j.jbankfin.2006.06.006 Cerqueiro, 2016, Collateralization, bank loan rates, and monitoring, J. Finance, 71, 1295, 10.1111/jofi.12214 Chang, 2015, A study on the features and enlightenment of Chinese listed companies’ material asset reorganizations, Inner Mongolia Social Sci., 36, 105 Chen, 2013, Loan collateral and financial reporting conservatism: Chinese evidence, J. Bank. Finance, 37, 4989, 10.1016/j.jbankfin.2013.09.003 Chen, 2016, The information role of audit opinions in debt contracting, J. Account. Econ., 61, 121, 10.1016/j.jacceco.2015.04.002 Chen, 2013, The board ties, the selection of the Target Company, and acquisition performance: a study from the perspective based on the information asymmetry between the acquirer and the target, Manage. World, 12, 117 Chikh, 2011, Acquisitions and CEO power: evidence from French networks, J. Corpor. Finance, 17, 1221, 10.1016/j.jcorpfin.2011.06.007 Chui, 2016, National culture and the cost of debt, J. Bank. Finance, 69, 1, 10.1016/j.jbankfin.2016.04.001 Costello, 2011, The impact of financial reporting quality on debt contracting: evidence from internal control weakness reports, J. Account. Res., 49, 97, 10.1111/j.1475-679X.2010.00388.x De Cesari, 2016, The effects of corporate acquisitions on CEO compensation and CEO turnover of family firms, J. Corpor. Finance, 38, 294, 10.1016/j.jcorpfin.2016.01.017 Duarte, 2016, The role of collateral in the credit acquisition process: evidence from SME lending, J. Business Finance & Account., 43, 693, 10.1111/jbfa.12207 Francis, 2005, The market pricing of accruals quality, J. Account. Econ., 39, 295, 10.1016/j.jacceco.2004.06.003 García-Teruel, 2014, The role of accruals quality in the access to bank debt, J. Bank. Finance, 38, 186, 10.1016/j.jbankfin.2013.10.003 Hall, 2012, The collateral channel: evidence on leverage and asset tangibility, J. Corpor. Finance, 18, 570, 10.1016/j.jcorpfin.2011.12.003 Han, 2017, Related–party M&As, nature of property rights and firm value, J. Account. Econ., 31, 78 Han, 2009, The role of collateral in entrepreneurial finance, J. Business Finance Account., 36, 424, 10.1111/j.1468-5957.2009.02132.x Huang, 2014, Listing approach, political favors and earnings quality: evidence from Chinese family firms, Account. Res. Intrisano, C., Rossi, F., 2012. Do M&As generate value for shareholders? An analysis of the Italian banking sector. Working paper. Jensen, 1976, Theory of the firm: managerial behavior, agency costs and ownership structure, J. Financ. Econ., 3, 305, 10.1016/0304-405X(76)90026-X Jensen, 1983, The market for corporate control: the scientific evidence, J. Financ. Econ., 11, 5, 10.1016/0304-405X(83)90004-1 Jiang, 2009, Equity cost, debt cost and corporate governance: a study of the difference, Manage. World, 11, 144 Jiménez, 2006, Determinants of collateral. J. Financial Econ., 81, 255, 10.1016/j.jfineco.2005.06.003 Karapetyan, 2014, Does information sharing reduce the role of collateral as a screening device?, J. Bank. Finance, 43, 48, 10.1016/j.jbankfin.2014.02.010 Kothari, 2005, Performance matched discretionary accrual measures, J. Account. Econ., 39, 163, 10.1016/j.jacceco.2004.11.002 Kravet, 2014, Accounting conservatism and managerial risk–taking: corporate acquisitions, J. Account. Econ., 57, 218, 10.1016/j.jacceco.2014.04.003 Leuz, 2016, The economics of disclosure and financial reporting regulation: evidence and suggestions for future research, J. Account. Res., 54, 525, 10.1111/1475-679X.12115 Li, 2009, The debt financing cost and the credit discrimination on private firms, J. Financ. Res., 12, 137 Li, 2013, Monetary policy, asset collateral–ability, cash flow and company investment: empirical evidence from Chinese manufacturing listed companies, J. Financ. Res., 6, 31 Li, 2006, Can multiple M&A create value for shareholders? A study of the factors affecting the long–term performance of diversified M&A, Manage. World, 3, 129 Li, 2011, Monetary policy, information disclosure quality and corporate debt financing, Account. Res. Li, 2016, Industry clusters, information transmission and value in M&As, J. Finance Econ., 42, 123 Liu, 2016, Political connections with corrupt government bureaucrats and corporate M&A decisions: a natural experiment from the anti–corruption cases in China, Pacific-Basin Finance J., 37, 52, 10.1016/j.pacfin.2016.03.003 Ma, 2015, Earning quality of debtor firm and bank loan decision, Finance Econ., 10, 56 Martynova, 2006, Mergers and acquisitions in Europe, Social Sci. Electron. Publish., 1 Martynova, 2011, The performance of the European market for corporate control: evidence from the fifth takeover wave, Eur. Financ. Manage., 17, 208, 10.1111/j.1468-036X.2009.00497.x Mateev, 2017, Is the M&A announcement effect different across Europe? More evidences from continental Europe and the UK, Res. Int. Business Finance, 40, 190, 10.1016/j.ribaf.2017.02.001 Mullin, 1995, The competitive effects of mergers: stock market evidence from the US Steel dissolution suit, Rand J. Econ., 314, 10.2307/2555919 Norden, 2013, Corporate leverage and the collateral channel, J. Bank. Finance, 37, 5062, 10.1016/j.jbankfin.2013.09.001 Pan, 2014, The accounting information quality of target firm, property and M&A performance, J. Financ. Res., 7, 140 Pan, 2016, Family control and loan collateral: evidence from China, J. Bank. Finance, 67, 53, 10.1016/j.jbankfin.2016.02.003 Ping, 2009, An empirical study on information asymmetry in the lending market: evidence from China's state–owned commercial banks, J. Financ. Res., 3, 1 Pittman, 2004, Auditor choice and the cost of debt capital for newly public firms, J. Account. Econ., 37, 113, 10.1016/j.jacceco.2003.06.005 Sengupta, 1998, Corporate disclosure quality and the cost of debt, Account. Rev., 73, 459 Sirower, 1997 Spiceland, 2016, Accounting quality, debt covenant design, and the cost of debt, Rev. Quant. Financ. Acc., 47, 1271, 10.1007/s11156-015-0538-9 Tian, 2013, Interlock directorates and merger performance: the evidence from Chinese A share listed companies, Nankai Business Review, 6, 112 Wang, 2012, Government intervention, corporate life cycle and performance of M&A - Evidence from Chinese listed companies, J. Finance, 12, 137 Wang, 2016, Corporate M&A, earnings management and changes of executive compensation, Account. Res. Wang, 2014, Accounting conservatism, loan collateral and borrower/lender state ownership, Account. Res. Watts, 2003, Conservatism in accounting part I: Explanations and implications, Account. Horizons, 17, 207, 10.2308/acch.2003.17.3.207 Wei, 2012, Financial ecological environment, audit opinion and the cost of debt financing, Audit. Res., 3, 98 Xu, 2016, Corporate M&A, private placement and earnings management, Commun. Finance Account., 24, 3 Yin, 2011, Asymmetric Information, corporate heterogeneity and credit risk, Econ. Res., 9, 121 Yu, 2015, Comparative analysis of the motives, problems and prospects between Chinese and western merger, J. Southwest Jiaotong Uni. (social sciences), 107 Zhang, 2008, The contracting benefits of accounting conservatism to lenders and borrowers, J. Account. Econ., 45, 27, 10.1016/j.jacceco.2007.06.002 Zhang, 2003, Do mergers and acquisitions create value: evidence from Chinese listed companies?, Econ. Res. Zhao, 2013, Internal control, managerial power and M&A performance: Evidence from the Chinese securities market, Nankai Bus. Rev., 16, 75 Zou, 2008, Debt capacity, cost of debt, and corporate insurance, J. Financ. Quantitat. Anal., 43, 433, 10.1017/S0022109000003586