TITLE:
M & A of Listed Real Estate Companies and Default Risk of Credit Bonds under the Counter-Cyclical Background
AUTHORS:
Anning Shi
KEYWORDS:
Listed Real Estate Companies, Counter-cyclical, Credit Bond Default, Mergers and Acquisitions
JOURNAL NAME:
Open Journal of Business and Management,
Vol.11 No.3,
May
10,
2023
ABSTRACT: Based on the credit bond data issued by listed real estate
companies under the industry classification standard of China Securities
Regulatory Commission from 2018 to 2020, the impact of mergers and acquisitions (M & A) of listed real estate companies on their credit bond default risk is
empirically studied under the counter-cyclical background. The empirical
results show that the M & A strategies of real estate companies will not
have a significant impact on the default risk of their bonds alone; under the
pressure of slowing economic growth in the counter-cyclical context, however,
the implementation of aggressive expansion M & A strategies of real estate
companies will increase the default risk of their bonds. For other factors that
affect the default of credit bonds of real estate companies, at the external
level, GDP is negatively related to the default risk of credit bonds of real
estate companies; at the internal level, the level of leverage is positively
related to the default risk of bonds, while the asset size, profitability,
solvency and M & A strategies of companies are negatively related to the
default risk of bonds; while at the bond level, the maturity and liquidity of
bonds are negatively related to default risk.