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Managers often claim that an important source of value in acquisitions is the acquiring firm's ability to finance investments for the target firm. This claim implies that targets are financially constrained prior to being acquired and that these constraints are eased following the acquisition. We evaluate the extent to which acquisitions lower financial constraints on a sample of 5,187 European acquisitions occurring between 2001 and 2008. Each of these targets remains a subsidiary of its new parent, so we can observe the target's financial policies following the acquisition. We examine whether these post-acquisition financial policies reflect improved access to capital. We find that the level of cash target firms hold, the sensitivity of cash to cash flow, and the sensitivity of investment to cash flow all decline significantly, while investment significantly increases following the acquisition. These effects are stronger in deals more likely associated with financing improvements. These findings are consistent with the view that easing financial frictions is a source of value that motivates acquisitions.

Zonder onderwerpscode: economie

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This book includes a collection of chapters illustrating the application of geochemical methods to investigate the interactions between geological materials and fluids with humans. Examples include the incorporation and human health effects of inhaling lithogenic materials, the reactivity of biological fluids with geological materials, and the impact on nascent biomineral formation. Biomineralization is investigated in terms of mineralogy, morphology, bone chemistry, and pathological significance with a focus on the health impacts of "foreign" geological/environmental trace element incorporation. One of the contribution is devoted to particulate matter, the presence of metals and metalloids in the environment, and the possibility of using human hair as a biomarker between environmental/geological exposure and human bioincorporation. Other chapters focus on the last advances on the analytical methods and instrumentational approaches to investigating the chemistry of biological fluids and tissues.

Geochemistry --- Geology. Earth sciences --- General biochemistry --- General ecology and biosociology --- Toxicology --- Social medicine --- Clinical chemistry --- Environmental protection. Environmental technology --- Geography --- geochemie --- klinische chemie --- medische chemie --- ecotoxicologie --- farmacologie --- biochemie --- milieuhygiëne --- toxicologie --- milieuzorg --- geografie

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Zonder onderwerpscode: economie

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Despite the fact that one-third of worldwide mergers involve firms from different countries, the vast majority of the academic literature on mergers studies domestic mergers. What little has been written about cross-border mergers has focused on public firms, usually from the United States. Yet, the vast majority of cross-border mergers involve private firms that are not from the United States. We provide an analysis of a sample of 56,978 cross-border mergers occurring between 1990 and 2007. We first characterize the patterns of who buys whom: Geography matters, with firms being much more likely to purchase firms in nearby countries than in countries far away. Purchasers are usually but not always from developed countries and they tend to purchase firms in countries with lower investor protection and accounting standards. A significant factor in determining acquisition patterns is currency movements; firms tend to purchase firms from countries relative to which the acquirer’s currency has appreciated. In addition economy-wide factors reflected in the country’s stock market returns lead to acquisitions as well. Both the currency and stock market effect could reflect either misvaluation or wealth explanations. Our evidence is more consistent with the wealth explanation than the misvaluation explanation.

Zonder onderwerpscode: economie

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We estimate holdings of highly-rated tranches of mortgage securitizations of American deposit-taking banks ahead of the credit crisis and evaluate hypotheses that have been advanced to explain these holdings. We find that holdings of highly-rated tranches were economically trivial for the typical bank, but banks with greater holdings performed more poorly during the crisis. Though univariate comparisons show that banks with large trading books had greater holdings, the holdings of highly-rated tranches are not higher for banks with large trading books in regressions that control for bank size. The ratio of highly-rated tranches holdings to assets increases with bank assets, but not for banks with more than $50 billion of assets. This evidence is inconsistent with explanations for holdings of highly-rated tranches that emphasize the incentives of banks deemed “too-big-to-fail”. Further, the evidence does not provide support for “bad incentives” theories of holdings of highly-rated tranches. We find, however, that banks active in securitization held more highly-rated tranches. Such a result can be consistent with regulatory arbitrage as well as with securitizing banks holding highly-rated tranches to convince investors of the quality of these securities. Our evidence supports the latter hypothesis.

Zonder onderwerpscode: economie