Skip to main content
Eastern Academy of Management Annual Meeting 2017

EAM 2017 Proceedings »

Advisors Use Them or Lose Them?

View File

Do bankers and legal advisors add value to acquisition transactions? This study examines whether their involvement correlates positively with acquirers’ abnormal returns surrounding acquisition announcement. The study also examines whether transaction-specific attributes interact with the presence of acquirers’ bankers to affect acquirers’ abnormal returns. The study examines a sample of 531 full-ownership acquisitions completed between 1988 and 1998. Results indicate involvement of targets’ and acquirers’ experts is detrimental to acquirers' abnormal returns. Investigation of transaction-specific attributes reveals that when acquirers are at an informational and experiential disadvantage, investors are wearier of acquirers’ bankers as is reflected by acquirers’ abnormal returns.


Patrizia Porrini    
LIU Post
United States


Powered by OpenConf®
Copyright ©2002-2016 Zakon Group LLC