Top-tier financial advisors, expropriation and Chinese mergers & acquisitions

Research output: Journal PublicationArticlepeer-review

13 Citations (Scopus)


The empirical literature contains mixed evidence regarding the relationship between advisor reputation and returns in mergers and acquisitions (M&As). However, very few studies consider the detrimental effect of expropriation by controlling shareholders and value creation role of top-tier financial advisors. We revisit the role of financial advisors in M&As by examining whether and why top-tier advisors affect acquisition quality in the Chinese market, finding that they generate substantial value for acquiring shareholders, though value creation is lower for high expropriation-possibility acquirers. We also show that top-tier financial advisors help improve operating performance and reduce bid premiums. The results contribute to the takeover literature by shedding new light on the role of financial advisor in acquisitions.

Original languageEnglish
Pages (from-to)157-166
Number of pages10
JournalInternational Review of Financial Analysis
Publication statusPublished - May 2018


  • Expropriation
  • Financial advisors
  • Investment banking
  • Mergers & acquisitions
  • Value creation

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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