Spelar förvärvarens kreditbetyg roll?

Sammanfattning: Title: Does the acquirer’s credit rating matter? Seminar date: 2020-06-04 Course: FEKH89, Degree Project in Finance, Undergraduate level, 15 ECTS credits Authors: Filip Ahlberg, Love Axelsson Edberg, Kira Östlund Advisor: Anamaria Cociorva Key words: Acquisitions, Credit rating, Payment method, Finance crisis, Multiple logistic regression Purpose: Purpose of this study is to investigate how and to what extent credit ratings affected the choice of payment method in domestic corporate acquisitions in the US market before and after the financial crisis 2007-2008. Furthermore, the purpose is to investigate whether the effect of credit ratings on the choice of payment method changed as a result of the financial crisis. Methodology: The study is done with a deductive approach and quantitative character. Using regression analysis, the study’s data from secondary sources were interpreted and related with theories and previous studies. Theoretical perspectives: The study is based on theories and previous research on optimal capital structure, information asymmetry and consequences, credit rating and consequences and decision on payment method in case of business acquisitions. Empirical foundation: Empirical foundation is based on 282 public domestic acquisitions worth over 500 million USD on the American market year 2000 - 2018. Conclusions: The study concludes that credit ratings and value significantly affected the choice of payment method during period 1. Furthermore, the effect of credit ratings on choice of payment method changed as a result of the financial crisis.