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An Examination of Bankers' Fees in Acquisition Transactions

The use of experts such as investment bankers and legal advisors on acquisition transactions has steadily increased (Source: Securities Data Corp). This study investigates whether bankers’ fees influence acquirers’ abnormal returns surrounding acquisition announcement. The study examines a sample of 531 full-ownership acquisitions completed between January 1, 1988 and December 31, 1998.