Capital structure and takeover decisions – analysis of acquirers listed on WSE
Capital structure and takeover decisions – analysis of acquirers listed on WSE

Summary/Abstract: The aim of the research presented in the article is to assess the impact of acquisitions on the capital structure of acquiring companies. The study was conducted on a sample of 431 companies listed on the WSE. To ensure comparability of data only companies that are not financial institutions were analysed. The test sample included companies that made acquisitions in the period 2006-2013. The control group consisted of companies with no takeover history. The study analysed the capital structure of acquirers before and after the acquisitions by analysis ratios such as: debt to book value of total assets, debt to the market value of the whole company, debt-to-EBITDA. According to the non-parametric Mann- Whitney U tests, there is no significant statistical evidence that medians of debt ratios are different in groups of acquiring and non-acquiring companies. Mann-Whitney U tests confirm that increases of debt level are significantly higher for acquiring than for non-acquiring companies.

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