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|Title||Financing M&A: Leverage Dynamics and Performance|
|Institution||University of Zurich|
|Faculty||Faculty of Business, Economics and Informatics|
|Number of Pages||71|
|Abstract Text||This thesis examines the effect of leverage on M&A operative performance and analyses post-acquisition leverage dynamics. The study is based on a sample of 1,719 firms and 1,181 acquisitions in the DACH region from 2000 to 2019. The results indicate that overleveraged firms pursue the most performance-increasing acquisitions, are less likely to make acquisitions, and generally decrease their leverage ratio in the acquisition year and in the three following years. Additionally, managers of underleveraged firms, usually increase their leverage ratio in the same period. The thesis confirms the current knowledge of leverage dynamics and performance also in the DACH market and it expands it by considering operative performance metrics instead of the usually implemented stock performance.|