The Factors Affecting M&A Advisory Fee

• Main Authors: Syu, Shao Ming, 許孝銘
• Other Authors: 吳啟銘
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/34404320331245783210

碩士 === 國立政治大學 === 財務管理研究所 === 104 === This paper investigates the relationship between M&A advisory fee and the advisory value which investment bank provides in M&A transaction. Most of papers studied M&A issues related to acquirer, different with previous studies, we not only focus on target fee but also acquirer advisory fee. Both of target and acquirer firm hire financial advisors to help them deal with the M&A transaction, to check if the factors affecting M&A advisory fee are different, we divided the model into two parts, one focus on target advisory fee, and the other focus on acquirer advisory fee. Evidence from 885 M&A transactions focus on target and 229 M&A transactions focus on acquirer between 2000 and 2015 supports that (1) Higher target company CAR, higher target M&A advisory fee, (2) Faster deal closing, higher the target M&A advisory fee. For acquirer investment bank, the evidence shows that (1) As the ranking move up, the advisory fee should be lower. One of the hypothesis is that higher premium, higher target and acquirer advisory fee, according to the result, we found that the premium is not statistically significant to target and acquirer advisory fee.