This paper employs a new approach to identify merger and acquisition (M&A) transactions financed by syndicated loans and provides evidence that acquirer announcement returns are higher in loan-financed M&A deals than in other deals. Utilizing an instrumental variable approach and a quasi-natural...

We employ textual analysis to identify mergers and acquisitions (M&As) financed by corporate loans and provide evidence that acquirer announcement returns are higher in loan-financed M&As. Utilizing an instrumental variable approach and difference-in-difference analysis, we confirm that lenders...