Measuring financial synergies in cross-border M&A transactions using diffusion processes
In a cross-border M&A framework, the question and measurement of financial synergy can be important in the analysis of the transaction and consideration needs to be given to whether the specific cross-border financial risks outweigh operational synergies. This paper develops a diffusion model to explore a set of optimal capital structures of the acquiring firm, target firm and merged firm. Differential taxes, bankruptcy costs, interest rate risk and foreign exchange risk are considerations of...[Show more]
|Collections||ANU Research Publications|
|Source:||International Journal of Services Technology and Management|
|01_Brailsford_Measuring_financial_synergies_2007.pdf||1.06 MB||Adobe PDF||Request a copy|
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