Alexandridis, George, Antypas, Nikolaos and Lee, Vicky Y. (2023) Do boutique investment banks have the Midas touch? Evidence from M&As. European Financial Management. ISSN 1354-7798 (Print), 1468-036X (Online) (doi:https://doi.org/10.1111/eufm.12425)

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Abstract

We study whether the meteoric rise of boutique advisors in mergers and acquisitions (M&As) is justified by their buy-side performance. We find that acquiring firms represented by boutique advisors generate superior short- and long-run abnormal returns over those employing full-service advisors. This effect is mainly prominent in private deals, interindustry mergers, and deals involving inexperienced acquirers, where valuation uncertainty tends to be higher. Overall, our results reflect that acquirer shareholders benefit from boutique investment banks' high level of industry expertise and independent advice, supporting the rising demand for their financial advisory services.

Item Type:	Article
Uncontrolled Keywords:	mergers and acquisitions; boutique advisors; value creation
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HF Commerce H Social Sciences > HG Finance
Faculty / School / Research Centre / Research Group:	Faculty of Business Faculty of Business > Department of Accounting & Finance
Last Modified:	23 Jun 2023 12:01
URI:	http://gala.gre.ac.uk/id/eprint/42005

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