Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Darren Filson


This paper examines the impact of leverage on M&A activity within the technology industry consisting of software, hardware, and semiconductor sectors from the bidding firm’s perspective from 1991 to 2017. We find that when using total debt to assets ratio as a proxy for leverage, there is a significant and positive relationship between leverage and deal count. Our findings suggest that a firm with higher leverage is a firm with a higher risk tolerance and consequently, a higher number of deals. We also find that this relationship does not change across business cycles and remains significant in hardware and software sectors but loses significance in the semiconductor sector.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.