Does the Reputation of Financial Advisors and Legal Advisors Matter in Mergers and Acquisitions: Evidence from U.S. Capital Market
Year: 2011
Type: preprint
Abstract: New empirical evidence from U.S. capital market is provided in this study concerning the impact by advisor reputation on mergers and acquisitions (M&A) outcomes. Unlike prior studies, which focus separately on the role of financial or legal advisors in the deal, this study combines the effects of not only investment banks as financial advisors but law firms as legal advisors. Furthermore, the endogeneity is controlled in client-advisor matching and prior relationship turns out to be an important determinant of choosing a top-tier financial advisor. Negative or no relationship is found between advisor reputation and deal outcomes, which contradicts to common assumptions.
Source: SSRN Electronic Journal
Authors: Weijia Hu, Lirong Han
Institutions: Jilin University, Lambton College
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3002899488