Debt-Fueled Acquisitions by Non-Financial Firms Employing Bank-Associated Officers in Poland

Dmytro Osiichuk and Paweł Mielcarz

Eastern European Economics, 2024, vol. 62, issue 5, 603-632

Abstract: Firms employing former or incumbent members of management and supervisory boards of commercial banks exhibit higher acquisitiveness. The presence of bank-associated officers increases firms’ proclivity to engage in serial, cross-industry, and cross-border acquisitions. Firms employing bank-associated officers buy targets with lower complementarity. They are also significantly more likely to settle transactions in cash, especially their first acquisition. While all firms experience acquisition-related increases in leverage, the latter is higher in firms employing bank-associated officers, particularly those associated with state-owned banks. Acquisitions completed by banker-employing firms record lower short-term shareholder returns than the remainder of the research sample.

Date: 2024
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DOI: 10.1080/00128775.2023.2176321

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