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This study investigates the impact of credit ratings on the premiums paid in mergers and acquisitions (M&As) using a sample of U.S. domestic deals from 1986 to 2012. The findings reveal that M&A premiums are significantly lower for rated firms compared to nonrated firms, suggesting that credit ratings help mitigate information asymmetry and lead to better post-acquisition performance for bidders. The research supports the hypothesis that the presence of credit ratings allows bidders to more accurately asses
- Author
- moov91
- Language
- EN