Karampatsas, Nikolaos; Petmezas, Dimitris; Travlos, … - In: Journal of Corporate Finance 25 (2014) C, pp. 474-493
This paper establishes that credit ratings affect the choice of payment method in mergers and acquisitions. We find that bidders holding a high rating level are more likely to use cash financing in a takeover. We attribute this finding to lower financial constraints and enhanced capability of...