Political Uncertainty and Firm Investment: Project-Level Evidence from M&A Activity
研究企业如何调整并购项目以应对政治不确定性，发现收购方会提前公告、跨州选择目标、减少交易规模并转向现金融资，尤其对财务约束强的企业影响更大。
Abstract We study how firms alter investment projects to mitigate exposure to political uncertainty. We examine deal-level merger data and find that, in addition to delaying and forgoing merger announcements, acquirers shift merger announcements earlier in time to avoid the period between announcement and effective dates overlapping an election, shift targets geographically away from election states, decrease the size of election-year deals, and shift from equity to cash financing for election-year deals. These results are stronger for acquirers with tighter financial constraints and deals more likely to be financed with equity and show financing matters to firms’ responses to election uncertainty.