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Financial Advisor Reputation and Value Creation in M&As - Evidence from the Scandinavian Market

Esbjörnsson, Emil LU and Lövstrand, Johan LU (2016) BUSN89 20161
Department of Business Administration
Abstract
In contrast to previous studies, we show a significant positive effect of
financial advisor reputation on cumulative abnormal returns. In M&As
completed in Scandinavia between 2000 and 2015, top-tier advisors
create 1.32% higher abnormal returns to the acquiring firms’
shareholders. Top-tier advisors are also associated with longer time to
completion, indicating that they are more thorough in the acquisition
process to ensure value creation. The results remain significant after
controlling for acquirer and deal characteristic shown to influence
acquirer returns.
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author
Esbjörnsson, Emil LU and Lövstrand, Johan LU
supervisor
organization
course
BUSN89 20161
year
type
H1 - Master's Degree (One Year)
subject
keywords
Financial Advisor, Mergers and Acquisitions, Scandinavia, Reputation, Top-Tier, Cumulative Abnormal Returns, Value Creation
language
English
id
8887443
date added to LUP
2016-08-22 12:43:23
date last changed
2016-08-22 12:43:23
@misc{8887443,
  abstract     = {In contrast to previous studies, we show a significant positive effect of
financial advisor reputation on cumulative abnormal returns. In M&As
completed in Scandinavia between 2000 and 2015, top-tier advisors
create 1.32% higher abnormal returns to the acquiring firms’
shareholders. Top-tier advisors are also associated with longer time to
completion, indicating that they are more thorough in the acquisition
process to ensure value creation. The results remain significant after
controlling for acquirer and deal characteristic shown to influence
acquirer returns.},
  author       = {Esbjörnsson, Emil and Lövstrand, Johan},
  keyword      = {Financial Advisor,Mergers and Acquisitions,Scandinavia,Reputation,Top-Tier,Cumulative Abnormal Returns,Value Creation},
  language     = {eng},
  note         = {Student Paper},
  title        = {Financial Advisor Reputation and Value Creation in M&As - Evidence from the Scandinavian Market},
  year         = {2016},
}