Leverage Adjustments, Executive Incentives, and the Market Valuation of Acquisitions Under State Capitalism: Evidence From China
We examine how state ownership and CEO financial incentives jointly condition the market valuation of acquisition‐related leverage adjustments in 2251 completed M&A deals by Chinese A‐share listed acquirers (2013–2023). Acquirers draw on spare financing capacity at deal completion, with larger leverage increases amon...