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Effects of dual holders’ bond financing on target firms’ product market competitiveness

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  • Bohdan, Roman
  • Mukherjee, Tarun

Abstract

Bohdan and Mukherjee (2024) examine why dual holders, hedge funds (HFs), purchase bonds in the companies where they own stocks and find that HFs provide debt funding to enable dual firms to seize investment opportunities otherwise missed due to internal and external capital constraints. The authors underscore that dual firms boost investment efficiency and enhance firm value. This paper explores how dual firms leverage borrowed funds to enhance their investment efficiencies and bolster their competitive edge in the product market.

Suggested Citation

  • Bohdan, Roman & Mukherjee, Tarun, 2025. "Effects of dual holders’ bond financing on target firms’ product market competitiveness," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325005926
    DOI: 10.1016/j.frl.2025.107329
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    References listed on IDEAS

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    1. Bodnaruk, Andriy & Rossi, Marco, 2016. "Dual ownership, returns, and voting in mergers," Journal of Financial Economics, Elsevier, vol. 120(1), pages 58-80.
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    4. Roman Bohdan & Tarun Mukherjee, 2024. "The role of the dual holder in mitigating underinvestment," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 47(2), pages 471-495, June.
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    Cited by:

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