Adra, S., Hamadi, M. and Yuan, J. orcid.org/0009-0000-9914-0561 (2023) Top-tier advisors and the market feedback dynamics in cross-border M&As. International Review of Financial Analysis, 86. 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 |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | © 2023 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/bync-nd/4.0/). |
Keywords: | Top-tier advisors; Market feedback; Cross-border mergers and acquisitions; Deal cancellation |
Dates: |
|
Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 11 Jun 2024 11:17 |
Last Modified: | 11 Jun 2024 11:17 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.irfa.2023.102495 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:213204 |