|
Archive@NYU >
Stern School of Business >
Finance Working Papers >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/26631
|
| Title: | The Role of Bank Advisors in Mergers and Acquisitions |
| Authors: | Allen, Linda
Jagtiani, Julapa
Saunders, Anthony |
| Keywords: | Relationship banking
investment bank advisors
commercial bank advisors
certification effect,
conflict of interest effect
mergers
acquisitions |
| Issue Date: | May-2000 |
| Series/Report no.: | FIN-00-007 |
| Abstract: | This paper looks at the role of commercial banks and investment banks as
financial advisors. Unlike some areas of investment banking, commercial
banks have always been allowed to compete directly with traditional
investment banks in this area. In their role as lenders and advisors,
banks can be viewed as serving a certification function. However, banks
acting as both lenders and advisors face a potential conflict of
interest that may mitigate or offset any certification effect. Overall,
it is found that, in their merger and acquisition advisory function, the
certification effect of commercial banks dominates the conflict of
interest effect and that the certification effect is particularly strong
when the target’s own bank advises merger targets. |
| URI: | http://hdl.handle.net/2451/26631 |
| Appears in Collections: | Finance Working Papers
|
All items in Faculty Digital Archive are protected by copyright, with all rights reserved.
|
