Industry expertise, information leakage and the choice of M&A advisors

• Main Authors: Chang, Xin, Shekhar, Chander, Tam, Lewis H. K., Yao, Jiaquan
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2016
• Subjects: G24; advisory fees; advisory services; industry expertise; L11; investment banking; G34; mergers and acquisitions
• Online Access: https://hdl.handle.net/10356/80197; http://hdl.handle.net/10220/40457
• Institution: Nanyang Technological University

This paper examines the impacts of M&A advisors’ industry expertise on firms’ choice of advisors in mergers and acquisitions. We show that an investment bank's expertise in merger parties’ industries increases its likelihood of being chosen as an advisor, especially when the acquisition is...