The Role of Financial Advisor Industry Expertise in M&A Quality : Evidence from Goodwill Impairment
Using a sample of publicly-listed Chinese firms during the period 2009 to 2017, we investigate the impact of financial advisors' industry expertise on the quality of mergers and acquisitions (M&A) in terms of goodwill impairment. Consistent with information transmission hypothesis, we find that acquirers who engage financial advisors with industry expertise exhibit significantly less inflated goodwill, fewer impairments, and enhanced long-term operational performance, particularly in cross-region and unrelated M&A transactions where information asymmetry is more severe. Our findings corroborate the regulator's directive to augment the proficiency of financial advisors in M&A markets
Year of publication: |
[2023]
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Authors: | Huang, Qiongyu ; Zhang, Ruiyao ; Li, Jingjing ; qiong, yao |
Publisher: |
[S.l.] : SSRN |
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