Mergers and Acquisitions and Default Risk: Evidence from Western European Financial Sector
The purpose of this paper is to examine the impact of mergers and acquisitions on the default risk of acquiring companies. The sample consists of 276 transactions carried out between 2010 and 2018 by acquirers from Western European financial sector. We estimate the acquirer’s default risk using Merton Distance-to-Default model and further regress a set of independent variables with the changes in