ChinaRains was founded in 1996 in Rains House, Stanford University, where it got its name. We are a discussion group formed by Chinese students and scholars based at or around Stanford University.

   
   
Spring, 2004-05 ChinaRains Talk
 


Time and Place: Thursday, May 5, 2005 ­ 7:30 to 9:30 PM,
                                 Room (TBA) 
                                Stanford , CA 94305


Topic: Do Prestigious Investment Banks Talk Their Clients 
             into Mergers and Acquisitions

Speaker Bio.: Xiaoying Xie is currently a Ph. D. candidate in Economics at Stanford University. She also has a Masters Degree in Legal Studies from Stanford Law School. She specializes in corporate finance, and law and economics, especially investment bank issues. 

 

Intro. of the Talk:  We have seen several high-profile investment bank scandals in recent years. This paper attempts to investigate how investment banks act in cases of conflicts of interest in mergers and acquisitions (M&A). I find that there are, statistically and economically, significant positive investment bank fixed effects on both the acquisition likelihood and acquisition frequency of equity underwriting client companies. These positive investment bank fixed effects are, at least partially, caused by their self interest in ensuring more deals in order to collect more advisory fees. I also find that the market has a negative reaction to mergers and acquisitions in which acquiring companies employ investment banks with prior underwriting relationship as advisors.

-   
- ¡¡
 
 
 
 
 
       
 

Copyright @ 2003 ChinaRains at Stanford
Webpage Created on April. 09, 2004

    












stanford Univeristy