Mergers and Investment Incentives
研究并购如何影响有杠杆企业的投资激励，发现多数并购能减少因风险债务导致的投资不足代理成本，并探讨了并购对债权和股权价值的影响。
This paper explores the effects of mergers on the investment incentives of the levered firm and on levered firm value. Under a fairly broad set of assumptions, it is shown that most firm combinations “improve” investment incentives, bringing about a reduction in the agency costs of underinvestment associated with risky debt. The effect of the merger on debt and equity claim values is also explored. If not properly anticipated, the merger may create a wealth transfer from equity holders to bondholders. Such a wealth transfer includes, but is not limited to, the “coinsurance effect.”