Wining, Dining, and Contracting in M&A
Wining, Dining, and Contracting in M&A
dc.contributor.author | Tang, Vicki Wei | |
dc.contributor.author | Zhu, Alex Guohong | |
dc.date.accessioned | 2020-12-01T00:50:34Z | |
dc.date.available | 2020-12-01T00:50:34Z | |
dc.date.issued | 2020-08-14 | |
dc.description.abstract | Wining and dining, as a socially embedded venue for bonding and face-face communication, induces more favorable M&A outcomes. On average, an increase in wining and dining fees of 1 million is associated with a reduction in goodwill impairment that accounts for 2.67% of the purchase price. Utilizing an exogenous shock that curbs wining and dining for a subset of acquisitions as the identification strategy, we find that affected deals experience a greater increase in goodwill impairment, but a greater decline in integration and performance target achievability than unaffected deals, suggesting trust building and information acquisition as two underlying channels. | |
dc.identifier.uri | http://hdl.handle.net/10125/70500 | |
dc.subject | Social Factors | |
dc.subject | M&A | |
dc.subject | Goodwill Impairment | |
dc.subject | Face-To-Face Communication | |
dc.subject | Incomplete Contract | |
dc.title | Wining, Dining, and Contracting in M&A |
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