The usefulness of financial advisors to government-influenced Chinese acquirers

Sorin Daniliuc, Hui Guo and Marvin Wee

Global Finance Journal, 2023, vol. 55, issue C

Abstract: In this study, we examined the usefulness of financial advisors in mergers and acquisitions (M&As) by Chinese acquirers with different levels of government influence. Using a sample of 5614 M&A deals involving unlisted targets in which the use of advisors by acquirers is not mandated, we found that their use is determined by the complexities and information asymmetries associated with such deals, and whether the acquirer has government support. In our analysis of deal outcomes, we also found that the use of advisors increases the likelihood of deal completion and the long-term post-acquisition performance for deals involving acquirers with government control. This indicates an incremental benefit associated with the use of financial advisors for government-controlled acquirers.

Keywords: Financial advisors; Government influence; State-owned enterprises; Mergers and acquisitions (search for similar items in EconPapers)
JEL-codes: G24 G28 G34 G38 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:55:y:2023:i:c:s1044028322001053

DOI: 10.1016/j.gfj.2022.100803

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