Abstract
We study how the customer concentration of targets impacts the occurrence and structure of mergers and acquisitions (M&A). We hypothesize and find that acquirers respond to customer concentration-related risk by placing fewer bids for targets with greater customer concentration and by using more stock payment in their offers. These relations vary predictably with major customer-related uncertainty. Our findings extend the literature by documenting an important risk factor in M&A and by quantifying the economic consequences of customer concentration.
Original language | English (US) |
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Journal | Journal of Business Finance and Accounting |
DOIs | |
State | Accepted/In press - 2021 |
Externally published | Yes |
ASJC Scopus subject areas
- Accounting
- Business, Management and Accounting (miscellaneous)
- Finance