The Impact Of Major Asset Restructuring On The Acquirer's Debt And Equity Financing Costs

The information risk in the capital market will affect the financing cost of listed companies,and the value of corporate asset collateral and assets is directly related to the strength of information risks.For creditors,collateral represents the solvency of the firm,and for shareholders,collateral represents the ability to withstand risks.Asset collateral and asset appreciation as an intermediary tool for information risk play an important role in relieving information asymmetry between creditors and shareholders.As a special form of mergers and acquisitions,major asset restructuring is much larger than traditional M&A transactions.The implementation of major asset restructuring may mean that a large number of assets flow from the target company to the acquirer,so that the acquirer has greater asset collateral and asset appreciation,and whether it will cause the purchaser's post-debt debt and equity financing costs to decrease,reducing external financing friction?Based on the theory of information asymmetry and mediation effect,this paper attempts to explain the impact and difference of major asset restructuring transactions on the acquirer's debt and equity financing costs from the perspective of the intermediary effect of asset collateral and asset appreciation.This paper takes the listed companies in China from 2012 to 2016 as the research object,uses the residual income model to estimate the equity financing cost,and estimates the debt financing cost based on the interest ratio index,which reduces the information asymmetry and increases the financial risk respectively.The dimension proposes the opposite hypothesis.Through the multiple regression model,the mediation effect model and the endogenous conversion model,the following conclusions are drawn: First,the major asset restructuring is negatively related to the acquirer's ex post debt and equity financing costs.Second,the major asset restructuring The transaction caused the increased assets and collateral of the acquirer to play a partial intermediary role between the major asset restructuring and financing costs.Third,the impact of the major asset restructuring transaction on the acquirer's equity financing cost is greater than the debt financing cost.It can be seen from the research results of this paper that the large-scale increase in the assets and collateral of the acquirer caused by the major asset restructuring transaction can reduce the information asymmetry between the acquirer and the fund provider,and reduce the risk required by investors due to information risks.Premium,which reduces financing costs.Moreover,there are differences in the ability of shareholders and creditors to obtain information and information risk prevention.As a result,these two types of investors have different levels of attention and dependence on changes in company assets and asset collateral.Therefore,it is necessary to focus on protecting and exerting the enthusiasm of shareholders.Better and smoother the company's financing constraints.