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Prior research has shown that differential access to debt markets significantly affects capital structure. In this paper, we examine the effect of access to debt markets on investment decisions by using debt ratings to indicate bond market access. We find that rated firms are more likely to undertake acquisitions than non-rated firms. This finding remains even after accounting for firm characteristics, for the probability of being rated and in matched sample analysis as well as in sub-samplesdoi:10.2139/ssrn.1787054 fatcat:7shgisknrfcyveb4oryzkexeqm