search query: @author Iannotta, G. / total: 3
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| Author: | Forte, G. Iannotta, G. Navone, M |
| Title: | The banking relationship's role in the choice of the target's advisor in mergers and acquisitions |
| Journal: | European Financial Management
2010 : SEP, VOL. 16:4, p. 686-701 |
| Index terms: | banking investment banks relationship marketing mergers MERGERS |
| Freeterms: | data target's advisor European |
| Language: | eng |
| Abstract: | The article analyses the factors influencing the target company's choice of bank advisor in mergers and acquisitions (M&As) and based on the choice of hiring an advisor as well as uses data on 473 European M&A transactions completed in the period 19942003. The author finds that the decision to hire an advisor depends on three main factors: (i) the intensity of the previous banking relationship, (ii) the reputation of the bidder company's advisor, and (iii) the complexity of the deal and investigates the impact of the bank advisor on shareholder wealth. The results indicates the abnormal returns of target company shareholders increase with the intensity of the previous banking relationship, thus indicating a certification role on the part of investment banks. |
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