Adra, S. orcid.org/0000-0002-0187-2607, Hamadi, M. and Yuan, J. (2023) Top-tier advisors and the market feedback dynamics in cross-border M&As. International Review of Financial Analysis. 102495. ISSN 1057-5219
Abstract
We provide evidence that the presence of top-tier advisors increases managers' propensity to withdraw from cross-border mergers and acquisitions (CBAs) with poor market returns around the announcement. This effect is stronger for private target acquisitions, in which information asymmetry is expected to be more pronounced, and smaller bidders, who are likely to lack the expertise required to process information themselves. This suggests that managers assisted by reputable investment banks consider negative market feedback in informationally challenging deals. Our results are robust to several endogeneity tests. We provide novel inferences about the informative role of stock markets in shaping advisory roles in respect of M&As.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2023 The Authors. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (https://creativecommons.org/licenses/by-nc-nd/4.0/) |
Keywords: | Top-tier advisors; Market feedback; Cross-border mergers and acquisitions; Deal cancellation |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 23 Jan 2023 11:20 |
Last Modified: | 02 Feb 2023 11:24 |
Published Version: | http://dx.doi.org/10.1016/j.irfa.2023.102495 |
Status: | Published |
Publisher: | Elsevier BV |
Refereed: | Yes |
Identification Number: | 10.1016/j.irfa.2023.102495 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:195531 |