Advisor reputation and bidder announcement returns in mergers and acquisitions
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School of Business |
Bachelor's thesis
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Date
2020
Department
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Mcode
Degree programme
Rahoitus
Language
en
Pages
26+5
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Abstract
I examine the effect of bidder advisor reputation on bidder announcement returns in M&A using a sample of 2 244 European transactions announced between 1995 and 2019. Consistent with Schiereck, Sigl-Grüb and Unverhau (2009), I do not find evidence of bidders with reputable advisors experiencing higher announcement returns. Additionally, I examine the effect of bidder advisors’ industry-specific reputation on bidder announcement returns. I do not find consistent evidence of higher announcement returns to bidders that hire advisors with industry-specific reputation. While a statistically significant increase of 0.010 in bidder cumulative abnormal returns can be found in a 1995-2012 subsample, this effect is not present in later periods. My results are robust to different event windows and variable definitions.Description
Thesis advisor
Luotonen, NiiloKeywords
announcement returns, financial advisor, investment bank services, M&A, quality, reputation, industry-specific, European bidders