The role of investment banker directors in M&A

• 成果类型: Article
• 署名作者: Huang, Qianqian; Jiang, Feng; Lie, Erik; Yang, Ke
• 署名单位: City University of Hong Kong; State University of New York (SUNY) System; University at Buffalo, SUNY; University of Iowa; Lehigh University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2014.02.003
• 发表日期: 2014
• 页码: 269-286
• 关键词: Mergers and acquisitions; Board of directors; Investment banking experience

摘要

We examine how directors with investment banking experience affect firms' acquisition behavior. We find that firms with investment bankers on the board have a higher probability of making acquisitions. Furthermore, acquirers with investment banker directors experience higher announcement returns, pay lower takeover premiums and advisory fees, and exhibit superior long-run performance. Overall, our results suggest that directors with investment banking experience help firms make better acquisitions, both by identifying suitable targets and by reducing the cost of the deals. (C) 2014 Elsevier B.V. All rights reserved.