Prior Client Performance and the Choice of Investment Bank Advisors in Corporate Acquisitions

• 成果类型: Article
• 署名作者: Sibilkov, Valeriy; McConnell, John J.
• 署名单位: University of Wisconsin System; University of Wisconsin Milwaukee; Purdue University System; Purdue University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhu031
• 发表日期: 2014
• 页码: 2474
• 关键词: FINANCIAL ADVISERS; acquiring firms; stock returns; MARKET; gains; size

摘要

Contrary to earlier studies, we find that prior client performance is a significant determinant of the likelihood that an investment bank will be chosen as the advisor by future acquirers and of the changes through time in banks' shares of the advisory business. Further, the changes in the market values of acquirers at the announcement of acquisition attempts are positively correlated with contemporaneous changes in the market values of their advisors. Two implications arise: (1) acquirers consider advisors' prior client performance when choosing their advisors and (2) market forces work to align advisors' and clients' interests in the acquisition market.