Do Investment Banks Matter for M&A Returns?

  title={Do Investment Banks Matter for M&A Returns?},
  author={Jack Bao and Alex Edmans},
  journal={Review of Financial Studies},
  • Jack Bao, Alex Edmans
  • Published 2011
  • Economics
  • Review of Financial Studies
  • We document a significant investment bank fixed effect in the announcement returns of M&A deals. The interquartile range of bank fixed effects is 1.26%, compared with a full-sample average return of 0.72%. The results remain significant after controlling for the component of returns attributable to the acquirer. Our findings suggest that investment banks matter for M&A outcomes, and contrast earlier studies that show no positive link between various measures of advisor quality and M&A returns… CONTINUE READING
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