Do boutique investment banks have the midas touch? Evidence from M&As

Alexandridis, G., Antypas, N. ORCID: https://orcid.org/0000-0001-8046-4590 and Lee, V. Y. (2024) Do boutique investment banks have the midas touch? Evidence from M&As. European Financial Management, 30 (1). pp. 634-672. ISSN 1468-036X doi: 10.1111/eufm.12425

Abstract/Summary

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, inter-industry 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
URI	https://reading-clone.eprints-hosting.org/id/eprint/111453
Identification Number/DOI	10.1111/eufm.12425
Refereed	Yes
Divisions	Henley Business School > Finance and Accounting
Publisher	Wiley
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