How Does Investment Bank Reputation Influence M&A Deal Characteristics? A Conceptual Model and Research Propositions

Abstract

This paper explores the criteria for Investment Bank (IB) selection within Merger and Acquisition (M&A) deals. It examines whether IB’s evaluate and negotiate M&A deals on terms that do not fully appropriate the potential rents, thereby complementing the acquiring firm’s ability to derive value from transactions. Unlike prior research where reputation is proxied by League Table rankings, this paper examines the multidimensionality of IB reputation in the context of multiple M&A deal characteristics.