@techreport{7c38dd77c98e439fb6e39ec5585f110e,
title = "The International Diversification of Banks and the Value of their Cross-Border M&A Advice",
abstract = "This paper investigates the effects of international diversification of banks on the value of their M&A advice. We study bidder returns to 1,253 cross-border M&A announcements. We find that acquirers engaging a more internationally diversified financial advisor generate lower excess returns. Acquirers benefit most from advisors with a greater focus on their home country. These results suggest that the benefits of advisors{\textquoteright} international diversification related to greater economies of scale and scope and the flexibility of allocating deals to the most skilled employee do not outweigh the costs emanating from a lack of country-specific knowledge and greater conflicts of interest.",
keywords = "Bank Diversification, Cross-Border Mergers and Acquisitions, Advisor Choice",
author = "{de Jong}, A. and S. Ongena and {van der Poel}, M.",
note = "This is also CentER Discussion Paper 2010-24 ",
year = "2010",
language = "English",
volume = "2010-03",
series = "EBC Discussion Paper",
publisher = "EBC",
type = "WorkingPaper",
institution = "EBC",
}