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Chapter 4 Abnormal Returns and In-House Mergers and Acquisitions

Wallace N. Davidson et al.

Research in Finance2012https://doi.org/10.1108/s0196-3821(2012)0000028007book-chapter
ABDC C
Weight
0.52

What the paper says

Some firms choose not to use an investment bank advisor in mergers and acquisitions (M&A) transactions. We test whether this decision affects the merger announcement period returns. We compare the abnormal returns from a sample of 179 in-house acquisitions (in which either the acquirer or the target firm does not hire an investment bank advisor) to those of a matched sample of acquisitions (in which all firms hire an investment bank advisor). We find that not employing a financial advisor has no significant effect on the abnormal returns of acquiring firms but does reduce the abnormal returns of target firms. This relation holds even after controlling for various firm and merger characteristics.

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https://doi.org/https://doi.org/10.1108/s0196-3821(2012)0000028007

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@article{wallace2012,
  title        = {{Chapter 4 Abnormal Returns and In-House Mergers and Acquisitions}},
  author       = {Wallace N. Davidson et al.},
  journal      = {Research in Finance},
  year         = {2012},
  doi          = {https://doi.org/https://doi.org/10.1108/s0196-3821(2012)0000028007},
}

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Chapter 4 Abnormal Returns and In-House Mergers and Acquisitions

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Evidence weight

0.52

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.43 × 0.4 = 0.17
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.