Newcastle University Business School

Event Item

Financial Advisor Centrality in Mergers and Acquisitions

Part of the Bahavioural Research in Finance research group seminar series.

Date/Time: Thursday 30 November, 14:00 - 15:30

Venue: Room 2.08, Newcastle University Business School

Speaker: Dr. Evangelos Vagenas-Nanos, Adam Smith Business School, University of Glasgow

This paper examines the role of the social network hierarchy of financial advisors in a M&As framework. Theoretically, more centrally located financial advisors who have access to more and better-quality information should help acquiring and target firms achieve superior outcomes. However, our findings indicate that more centrally located advisors fail to create value for both bidders and targets, while they charge higher advisor fees. They are more likely to be involved in higher M&A activity, with larger bidders, public and large deals. Financial advisors exploit their relative power in their network to undertake takeover deals and pursue private benefits.