Product Market Competition, Mergers and Acquisitions, and Covenant Redesign
研究发现行业竞争冲击显著影响并购中的债务契约重新设计，收购方更可能进行要约回购并减少对并购、投资等的限制，且该效应在更大、更盈利的公司中更强。
Abstract Industry competition shocks are major drivers of mergers and acquisitions (M&A). We document strong positive effects of competition shocks on M&A-related covenant redesign. Acquiring firms in high-competition environments are significantly more likely to undertake tender offer bond repurchases and reduce restrictions on mergers, investments, payouts, and financing, but increase change-in-control covenants. This effect is stronger for larger, more profitable firms. Moreover, announcement returns from M&A transactions of redesigning firms in more competitive settings are significantly higher, while acquisition deal premiums are lower. Our study shows the significant effect of industry competition shocks on debt recontracting in M&A.