Does short-maturity debt discipline managers? Evidence from cash-rich firms' acquisition decisions☆
Review articleOpen access
2018/12/01 Full-length article DOI: 10.1016/j.jcorpfin.2018.10.001
Journal: Journal of Corporate Finance
Highlights•Short-maturity debt mitigates cash-rich firms’ overinvestment in acquisitions.•The disciplinary role is mostly concentrated among cash-rich firms that are weakly governed.•The disciplinary role is more pronounced for cash-rich firms that operate in less competitive industries.•Short-maturity debt is associated with higher announcement returns and better post-acquisition operating performance.
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