全球智库信息集成服务系统(G2TT): DP6969 A Tale of Two Platforms: Dealer Intermediation in the European Sovereign Bond Market

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP6969
	DP6969 A Tale of Two Platforms: Dealer Intermediation in the European Sovereign Bond Market
	Peter G Dunne; Harald Hau; Michael Moore
发表日期	2008-09-23
出版年	2008
语种	英语
摘要	We study holdings in M&A targets by financial conglomerates which affiliated investment banks advise the bidders. We show that advisors take positions in the targets before M&A announcements. These stakes are positively related to the probability of observing the bid and to the target premium. We argue that this can be explained in terms of advisors, privy to important information about the deal, investing in the target in the expectation of its price to increase. We document the high profits of this strategy. We also document a positive relationship between the advisory stake and the deal characteristics. The advisory stake is positively related to the likelihood of deal completion and to the termination fees. However, these deals are not wealth-creating: there is a negative relation between the advisory stake and the viability of the deal. These results provide new insights into the conflicts of interest affecting financial intermediaries simultaneously advising on deals and investing in equities.
主题	Financial Economics
关键词	Insider trading Mergers and acquisitions Risk arbitrage
URL	https://cepr.org/publications/dp6969
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/535806
推荐引用方式 GB/T 7714	Peter G Dunne,Harald Hau,Michael Moore. DP6969 A Tale of Two Platforms: Dealer Intermediation in the European Sovereign Bond Market. 2008.