Can rainmakers justify their pay? The role of investment banks in reit m&as
| Autor: | Tiezhu Sun, Zilong Wang, Nick Mansley, Patrick Han Lin Goh, Weiwei Zhang |
|---|---|
| Přispěvatelé: | Apollo - University of Cambridge Repository |
| Rok vydání: | 2021 |
| Předmět: |
050208 finance
Real Estate Investment Trust (REIT) 3502 Banking Finance and Investment business.industry investment bank Strategy and Management 05 social sciences Financial system HD28-70 35 Commerce Management Tourism and Services Investment banking Real estate investment trust HG1-9999 0502 economics and business Management. Industrial management 3507 Strategy Management and Organisational Behaviour financial advisor Business 050207 economics Finance event study mergers and acquisitions |
| Zdroj: | International Journal of Strategic Property Management; Vol 25 No 4 (2021); 254-266 International Journal of Strategic Property Management, Vol 25, Iss 4, Pp 254-266 (2021) |
| ISSN: | 1648-9179 1648-715X |
| Popis: | This study explicitly rejects the prima facie proposition that the top-tier investment banks are capable of delivering supernormal value creation to the shareholders of a REIT acquirer in a corporate acquisition. Using the event study method, we find that REIT acquirers advised by market-leading investment banks suffer an average cumulative abnormal return of −4.41% following the M&A announcement, whereas REIT acquirers advised by non-top-tier investment banks only suffer an average cumulative abnormal return of −1.49%. The evidence shows that the contemporary practice of employing investment banks based on the prestige of the advisory firms could potentially result in value-destroying M&As for the REIT acquirers. |
| Databáze: | OpenAIRE |
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