Does relationship matter? : The choice of financial advisors

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dc.contributor Bank of Finland
dc.contributor.author Francis, Bill B.
dc.contributor.author Hasan, Iftekhar
dc.contributor.author Sun, Xian
dc.date.accessioned 2014-09-22T07:57:57Z
dc.date.available 2014-09-22T07:57:57Z
dc.date.issued 2012
dc.identifier.isbn 978-952-462-819-8
dc.identifier.issn 1456-6184
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/7445
dc.description.abstract Using a sample of U.S. mergers and acquisitions, this study evaluates how banking relationships influence acquirers choice of financial advisors. Specifically, it examines: i) acquirers previous relationships with advisors in various financial activities: M&A advisories, equity issuings and lending activities; ii) the optimism of analyst recommendations; and iii) how acquirers past satisfaction with their financial advisors determines the choice of financial advisors. Overall, the findings suggest that the influence of banking relationships on a firm s choice of financial institutions is limited in the area of M&A advisory business. The implications from the traditional relationship banking studies may not be suitable to explain how firms choose advisors, due to the wide variety of practices in investment banking activities. The evidence portrays that firms with M&A experience are more likely to switch financial advisors with poor deal outcomes. Firms without M&A experience, on the other hand, are more likely to choose their underwriters as financial advisors, especially when they provide overly optimistic analyst coverage prior to the transactions.
dc.format.extent 60 s.
dc.language.iso eng
dc.relation.ispartofseries Bank of Finland Research Discussion Papers
dc.rights https://helda.helsinki.fi/bof/copyright
dc.subject kansainvälinen
dc.subject fuusiot
dc.subject yrityskaupat
dc.subject USA
dc.subject sijoituspankit
dc.subject yritykset
dc.subject rahoituslaitokset
dc.subject pankkitoiminta
dc.subject SP
dc.subject RP
dc.subject neuvonantajat
dc.subject välittäjät
dc.title Does relationship matter? : The choice of financial advisors
dc.type Sarjajulkaisu
dc.identifier.urn URN:NBN:fi:bof-20140807235
dc.series.name Bank of Finland Research Discussion Papers
dc.series.year 2012
dc.series.number 28/2012
dc.series.sortingnumber 0028
dc.date.publication 18.10.2012
dc.description.publication Ilmestynyt myös Journal of Economics and Business 2014 ; 73 ; May.

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