Unlocking Value: The Role of Top-Tier Financial Advisors in Generating Shareholder Value in M&As
(2024) BUSN79 20241Department of Business Administration
- Abstract
- Purpose: This study aims to investigate the impact of M&A adviser reputation on acquirer’s
deal performance on the Swedish Market. We also investigate if top-tier financial advisors can
have a positive influence in more complex deal situations, like cross-border and diversification
transactions.
Methodology: This study uses regression models with robust standard errors to test our
hypotheses. The main explanatory variable for our regression model is the top-tier financial
advisor dummy. We also use two additional models where the main explanatory variables are the
dummy for cross-border transactions and for diversification transactions.
Theoretical perspective: The theory in this paper consists of prior empirical research as... (More) - Purpose: This study aims to investigate the impact of M&A adviser reputation on acquirer’s
deal performance on the Swedish Market. We also investigate if top-tier financial advisors can
have a positive influence in more complex deal situations, like cross-border and diversification
transactions.
Methodology: This study uses regression models with robust standard errors to test our
hypotheses. The main explanatory variable for our regression model is the top-tier financial
advisor dummy. We also use two additional models where the main explanatory variables are the
dummy for cross-border transactions and for diversification transactions.
Theoretical perspective: The theory in this paper consists of prior empirical research as well as
theories like “Superior deal hypothesis”, “Deal completion hypothesis”, “Better merger
hypothesis” and “Bargaining power hypothesis”.
Empirical foundation: The league table of financial advisors is collected from Mergermarket
and the data about the deals is collected from S&P Capital IQ which resulted in a sample of 293
transactions between 2014-01-01 to 2023-12-31.
Conclusion: We found that top-tier financial advisor involvement showed no significant positive
impact on acquirer CAR. We neither found evidence that they add value in complex deals like
cross-border or diversifying transactions. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9168084
- author
- Andersson, Gustav LU and Flyning, August LU
- supervisor
- organization
- course
- BUSN79 20241
- year
- 2024
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Top-tier financial advisor, cumulative abnormal return, cross-border, diversification, transaction
- language
- English
- id
- 9168084
- date added to LUP
- 2024-08-07 15:36:46
- date last changed
- 2024-08-07 15:36:46
@misc{9168084, abstract = {{Purpose: This study aims to investigate the impact of M&A adviser reputation on acquirer’s deal performance on the Swedish Market. We also investigate if top-tier financial advisors can have a positive influence in more complex deal situations, like cross-border and diversification transactions. Methodology: This study uses regression models with robust standard errors to test our hypotheses. The main explanatory variable for our regression model is the top-tier financial advisor dummy. We also use two additional models where the main explanatory variables are the dummy for cross-border transactions and for diversification transactions. Theoretical perspective: The theory in this paper consists of prior empirical research as well as theories like “Superior deal hypothesis”, “Deal completion hypothesis”, “Better merger hypothesis” and “Bargaining power hypothesis”. Empirical foundation: The league table of financial advisors is collected from Mergermarket and the data about the deals is collected from S&P Capital IQ which resulted in a sample of 293 transactions between 2014-01-01 to 2023-12-31. Conclusion: We found that top-tier financial advisor involvement showed no significant positive impact on acquirer CAR. We neither found evidence that they add value in complex deals like cross-border or diversifying transactions.}}, author = {{Andersson, Gustav and Flyning, August}}, language = {{eng}}, note = {{Student Paper}}, title = {{Unlocking Value: The Role of Top-Tier Financial Advisors in Generating Shareholder Value in M&As}}, year = {{2024}}, }