 Economic shocks, M&A advisors, and industry takeover activityYun Feng, Chelsea Liu and Alfred Yawson Pacific-Basin Finance Journal, 2023, vol. 82, issue C Abstract: The paper examines the role of M&A advisors in propagating takeover activity following economic shocks that affect industry conditions. M&A advisors constitute an important intermediary in the market for corporate control by enhancing M&A success at a transaction level. We posit that, at an industry level, M&A advisors also play a significant role in propagating aggregate merger activity in the wake of an industry shock. The empirical results show a positive, significant relationship between the presence of M&A advisors and industry takeover activity, and offer evidence supporting the incremental role of M&A advisors following industry shocks. The results are robust to empirical strategies aimed at alleviating endogeneity concerns, including using a legislative change as an exogenous shock to M&A advisors and exploring reverse causality. Our evidence offers novel insights on the collective role of M&A advisors in the takeover market. Keywords: Economic shocks, M&A advisors; Industry merger activity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:82:y:2023:i:c:s0927538x23002275 DOI: 10.1016/j.pacfin.2023.102156 Access Statistics for this article Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee More articles in Pacific-Basin Finance Journal from Elsevier |
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