首页 | 本学科首页   官方微博 | 高级检索  
     


Industry Expertise,Information Leakage and the Choice of M&A Advisors
Authors:Xin Chang  Chander Shekhar  Lewis H. K. Tam  Jiaquan Yao
Abstract:This paper examines the impacts of M&A advisors’ industry expertise on firms’ choice of advisors in mergers and acquisitions. We show that an investment bank's expertise in merger parties’ industries increases its likelihood of being chosen as an advisor, especially when the acquisition is more complex, and when a firm in M&A has less information about the merger counterparty. However, due to the concerns about information leakage to industry rivals through M&A advisors, acquirers are reluctant to share advisors with rival firms in the same industry, and they are more likely to switch to new advisors if their former advisors have advisory relationship with their industry rivals. In addition, we document that advisors with more industry expertise earn higher advisory fees and increase the likelihood of deal completion.
Keywords:G24  G34  L11  investment banking  mergers and acquisitions  advisory fees  advisory services  industry expertise
设为首页 | 免责声明 | 关于勤云 | 加入收藏

Copyright©北京勤云科技发展有限公司  京ICP备09084417号