@techreport{e3b3753d87d446d6be1230e993c9b87a,
title = "Creditor Rights, Claims Enforcement, and Bond Performance in Mergers and Acquisitions",
abstract = "This paper shows that country-level differences in creditor protection affect bond performance around cross-border M&A announcements. Using Eurobonds and a global sample of 1,100 cross-border M&As, we find that the bondholders of bidding firms respond more positively to deals that expose their firm to a jurisdiction with stronger creditor rights and more efficient claims enforcement through courts. Positive creditor protection spillovers are enhanced by now-global jurisdictional cooperation in multinational insolvencies and creditors{\textquoteright} ability to do insolvency arbitrage. The spillover effects we observe are stronger for firms with higher asset risk, longer maturity bonds, and a higher likelihood of financial distress.",
keywords = "bondholder value, cross-border mergers and acquisitions (M&As), creditor rights, legal enforcement, eurobonds",
author = "Luc Renneboog and Peter Szilagyi and Cara Vansteenkiste",
year = "2017",
month = mar,
day = "15",
language = "English",
volume = "2017-012",
series = "CentER Discussion Paper",
publisher = "CentER, Center for Economic Research",
type = "WorkingPaper",
institution = "CentER, Center for Economic Research",
}