Are fairness opinions fair? The case of mergers and acquisitions

• 成果类型: Article
• 署名作者: Kisgen, Darren J.; Qian, Jun Qj; Song, Weihong
• 署名单位: Boston College; University System of Ohio; University of Cincinnati
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2008.03.001
• 发表日期: 2009
• 页码: 179-207
• 关键词: Fairness opinion; merger; Conflict of interest; Deal premium; Announcement return

摘要

Over the period 1994-2003. 80% of targets and 37% of acquirers obtain a third-party assessment of the fairness of a merger or acquisition. These fairness opinions do not affect deal outcomes when used by targets, but they affect deal outcomes when used by acquirers. The deal premium is lower in transactions if the acquirer obtains a fairness opinion, and is further reduced if multiple advisors provide an opinion. However, the acquirer's announcement-period return is 2.3% lower if the acquirer has a fairness opinion, especially if the acquirer pays a high premium, indicating that investors are skeptical of these transactions. (C) 2008 Elsevier B.V. All rights reserved.