The effects of takeover laws on corporate financing policies: global evidence

Jaehyeon Kim and Kang Mo Koo

Finance Research Letters, 2024, vol. 69, issue PB

Abstract: Using a cutting-edge estimation method to address heterogenous treatment effects arising from differential treatment timing, we examine the effect of international takeover laws on corporate financing. We find that firms reduce their equity financing in response to takeover laws. Further analyses indicate that takeover laws’ negative effect on equity financing is more pronounced for firms with higher financial constraints and for firms in countries with strong investor protections.

Keywords: International takeover laws; Equity financing; Debt financing; Investor protections (search for similar items in EconPapers)
JEL-codes: G32 G34 K22 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324011802

DOI: 10.1016/j.frl.2024.106151

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