Economic Themes (2008) 46 (1) 4, 37-50
Ksenija Denčić-Mihajlov
Abstract: The paper analyses the interrelation between the acquisition financing decision, capital structure, financial and systemic risk of the acquiring company. Debt financing of acquisition strategy has been analysed in the context of atomistic and pivotal shareholders existence. Having examined the capital structure as a determinate of an acquisition, the second section of the paper explores the effects of the acquisition strategy on the capital structure of the acquiring company in the postacquistion period. The third section of the paper contains a review of theoretic and empirical studies of the acquisition impact on the beta coefficient and varance of returns of integrated firms in the postacquisition period.
Keywords: acquisition strategy; longterm debt; capital structure; financial leverage; systemic risk; variance
FINANCIAL DECISIONS AND ACQUISITION STRATEGY: CAUSES AND CONSEQUENCES
Ksenija Denčić-Mihajlov
Abstract: The paper analyses the interrelation between the acquisition financing decision, capital structure, financial and systemic risk of the acquiring company. Debt financing of acquisition strategy has been analysed in the context of atomistic and pivotal shareholders existence. Having examined the capital structure as a determinate of an acquisition, the second section of the paper explores the effects of the acquisition strategy on the capital structure of the acquiring company in the postacquistion period. The third section of the paper contains a review of theoretic and empirical studies of the acquisition impact on the beta coefficient and varance of returns of integrated firms in the postacquisition period.
Keywords: acquisition strategy; longterm debt; capital structure; financial leverage; systemic risk; variance
