Do Investment Banks Matter for M&A Returns?

• 成果类型: Article
• 署名作者: Bao, Jack; Edmans, Alex
• 署名单位: University System of Ohio; Ohio State University; University of Pennsylvania; National Bureau of Economic Research
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhr014
• 发表日期: 2011
• 页码: 2286
• 关键词: performance; persistence; FIRMS; CHOICE; WEALTH; gains

摘要

We document a significant investment bank fixed effect in the announcement returns of M&A deals. The interquartile range of bank fixed effects is 1.26%, compared with a full-sample average return of 0.72%. The results remain significant after controlling for the component of returns attributable to the acquirer. Our findings suggest that investment banks matter for M&A outcomes, and contrast earlier studies that show no positive link between various measures of advisor quality and M&A returns. Differences in average returns across banks are also persistent over time and predictable from prior performance. Clients do not chase past returns, which may explain why persistence exists in M&A performance while it is absent in mutual funds. (JEL G24, G34)