The value of access to finance: Evidence from M&As

Jess Cornaggia, Jay Yin Li

Research output: Contribution to journalArticlepeer-review

42 Scopus citations


We examine synergies in mergers and acquisitions (M&As) generated by firms’ comparative advantages in access to bank finance. We find robust evidence that greater access to bank finance increases firms’ attractiveness as acquisition targets. Targets’ comparative advantage in bank finance improves bank credit supply and reduces financing costs for the merged firms. These effects are more pronounced for acquirers with greater frictions in accessing bank loans and acquirers with greater growth opportunities. Overall, this paper reveals that targets, not just acquirers, contribute to financial synergies in M&As.

Original languageEnglish (US)
Pages (from-to)232-250
Number of pages19
JournalJournal of Financial Economics
Issue number1
StatePublished - Jan 2019

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics
  • Strategy and Management


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