Are Bank Loans a Blessing or a Curse for M&A Quality? Evidence From China

DOI

10.2991/978-94-6463-845-5_58How to use a DOI?

Keywords

Bank loans; M&A quality; Nature of business ownership; Free cash flow

Abstract

This paper reviews the impact of bank credit on M&A performance, combining corporate ownership and free cash flow to study the relationship between bank loans and M&A quality of Chinese public companies. Using 1956 M&A events as samples, the paper empirically examines the impact of bank loans on M&A quality. The study employs a multiple regression model and introduces the nature of corporate ownership and free cash flow as moderating variables. The study finds that bank loan growth has a substantial impact on the success of mergers and acquisitions (M&A), with the effect being more pronounced in cases of higher financial leverage indicators. State-owned enterprises (SOEs) impede the promotion of loans, while free cash flow positively regulates the impact of loans.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ping Hu
PY  - 2025
DA  - 2025/09/16
TI  - Are Bank Loans a Blessing or a Curse for M&A Quality? Evidence From China
BT  - Proceedings of the 2025 6th International Conference on Management Science and Engineering Management (ICMSEM 2025)
PB  - Atlantis Press
SP  - 570
EP  - 575
SN  - 2667-1271
UR  - https://doi.org/10.2991/978-94-6463-845-5_58
DO  - 10.2991/978-94-6463-845-5_58
ID  - Hu2025
ER  -