Wining, Dining, and Contracting in M&A

Date
2020-08-14
Authors
Tang, Vicki Wei
Zhu, Alex Guohong
Contributor
Advisor
Department
Instructor
Depositor
Speaker
Researcher
Consultant
Interviewer
Journal Title
Journal ISSN
Volume Title
Publisher
Volume
Number/Issue
Starting Page
Ending Page
Alternative Title
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.
Description
Keywords
Social Factors, M&A, Goodwill Impairment, Face-To-Face Communication, Incomplete Contract
Citation
Extent
Format
Geographic Location
Time Period
Related To
Rights
Rights Holder
Email libraryada-l@lists.hawaii.edu if you need this content in ADA-compliant format.