Economic shocks, M&A advisors, and industry takeover activity
Files
(Published version)
Date
2023
Authors
Feng, Y.
Liu, C.
Yawson, A.
Editors
Advisors
Journal Title
Journal ISSN
Volume Title
Type:
Journal article
Citation
Pacific Basin Finance Journal, 2023; 82:102156-1-102156-27
Statement of Responsibility
Yun Feng, Chelsea Liu, Alfred Yawson
Conference Name
Abstract
The paper examines the role of M&A advisors in propagating takeover activity following economic shocks that affect industry conditions. M&A advisors constitute an important intermediary in the market for corporate control by enhancing M&A success at a transaction level. We posit that, at an industry level, M&A advisors also play a significant role in propagating aggregate merger activity in the wake of an industry shock. The empirical results show a positive, significant relationship between the presence of M&A advisors and industry takeover activity, and offer evidence supporting the incremental role of M&A advisors following industry shocks. The results are robust to empirical strategies aimed at alleviating endogeneity concerns, including using a legislative change as an exogenous shock to M&A advisors and exploring reverse causality. Our evidence offers novel insights on the collective role of M&A advisors in the takeover market.
School/Discipline
Dissertation Note
Provenance
Description
Available online 18 September 2023
Access Status
Rights
© 2023 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).