| Summary: | 碩士 === 元智大學 === 財務金融暨會計碩士班(財務金融學程) === 107 === Nowadays, there is a tendency that many companies engages in merger and acquisition (M&A) to achieve the goal of diversification. Companies hope that business operation may be more integrated and complementary through the M&A, which may bring out a new opportunity for them. The purpose of this study is to examine whether diversified M&A influences corporations’ risk and corporate financing decisions, especially corporations’ bank financing decisions. The research sample in this study contains companies in United States between 1978 and 2016. The empirical results are as follows: (1) The systematic risk of stock returns reduces after diversified mergers and acquisitions. (2) Corporations tend to increase their bank financing after the diversified M&A. (3) Compared with stock financing, corporations tend to use debt financing to raise capital after diversified M&A. This empirical results imply that corporations may have multiple ways to earn profit after diversified M&A, resulting the reduction of business risk and the cost of debt financing. As a result, companies are more likely to use debt financing when raising capital after diversified M&A.
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