Home preference at selecting financial advisors in cross-border M&As

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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 2014-09-22T07:58:14Z
dc.date.available 2014-09-22T07:58:14Z
dc.date.issued 2012
dc.identifier.isbn 978-952-462-822-8
dc.identifier.issn 1456-6184
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/7565
dc.description.abstract This paper examines the determinants of the choice of financial advisors and their impact on the announcement effects of US acquirers in cross-border M&As. Two hypotheses are tested: one pertains to the acquiring firms' home preference in selecting financial advisors, and the other relates to advisors' experience in target countries. Evidence supports the home preference hypothesis in the selection of advisors in cross-border M&As, particularly in all-cash paid transactions where acquirers take the entire risk of not realizing the expected synergy value. We also observe home preference among investors as acquirers that picked US advisors experience significantly higher positive abnormal returns in all-cash paid transactions than those without US advisors, even when the chosen US advisors do not have significant experience in the target country. Finally, home preference at the choice of financial advisor may be costly if US acquirers pass by more experienced because of home preference.
dc.format.extent 52 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 Home preference at selecting financial advisors in cross-border M&As
dc.type Sarjajulkaisu
dc.identifier.urn URN:NBN:fi:bof-20140807343
dc.series.name Bank of Finland Research Discussion Papers
dc.series.year 2012
dc.series.number 31/2012
dc.series.sortingnumber 0031
dc.date.publication 29.10.2012
dc.identifier.doi 10.1016/j.irfa.2014.01.003
dc.description.publication Published in International Review of Financial Analysis, Volume 32, March 2014, Pages 143-158

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