2010
The international diversification of banks and the value of their cross-border M&A advice
Publication
Publication
Discussion paper Center for Economic Research , Volume 2010-24 p. 1- 51
Abstract
We examine the impact of the international diversification by banks on the value of their advice
provided in cross-border merger and acquisition transactions by studying bidder returns and deal
performance following 1,708 cross-border M&A deals. We find that bidders engaging a more
internationally diversified financial advisor face lower stock price and synergy returns, worse
deal operating performance, and slower deal completion. We show that these negative effects of
diversification can be mitigated by involvement in financing or country-specific available
capacity of the advisor.
[version: December 2013]
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| hdl.handle.net/1765/31621 | |
| Discussion paper Center for Economic Research | |
| Organisation | Erasmus Research Institute of Management |
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de Jong, A., Ongena, S., & van der Poel, M. (2010). The international diversification of banks and the value of their cross-border M&A advice. Discussion paper Center for Economic Research (Vol. 2010–24, pp. 1–51). Retrieved from http://hdl.handle.net/1765/31621 |
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