Adrian
Yin
78 Program for Research in Markets and Organizations The Art of the Deal: Exploring the Dynamics of Strategic Mergers and Acquisitions in the Corporate World
Abstract profile. Full document pending author claim.
Authors:
Adrian Yin, Haiyang Zhang, Maria Roche
Date Created:
2025-01-01
Course Title:
Professor:
Not specified
About Paper:
In the complex and frequently misunderstood domain of mergers patterns and causal relationships within terminated M&A deals. and acquisitions (M&A), this research project aims to understand Preliminary findings indicate insights into the diverse factors the underlying factors contributing to the failure and termination influencing M&A deal terminations, including the commonality of M&A deals. We systematically analyzed extensive empirical of deal cancellations, with approximately 10-20% of publicly data to identify and quantify how specific variables influenced announced transactions across a variety of industries collapsing the likelihood of deal termination. To achieve this objective, we due to regulatory, financing, strategic misalignment, or other conducted a rigorous literature review of over ten foundational reasons, and the impact of termination fees, typically ranging and contemporary studies focusing on M&A deal terminations. from 1% to 5% of enterprise value. Further, analysis of post- We also collected comprehensive data from 2000 to 2023 announcement stock price movements suggests asymmetric value using the Harvard Business School Baker Library’s LSEG creation, as targets typically experience neutral effects while Workspace SDC Deal Screener database, analyzing almost acquirors frequently face negative abnormal returns, indicating 300,000 different deals. Factors considered in the analysis a skew toward value creation for target firms. The theoretical range from political interventions, regulatory constraints, and contribution of this project lies in addressing the whitespace of variations in payment structures to country-specific characteristicsunderlyingreasonsthatdriveM&Adealterminations/withdrawals. and deal size. Following meticulous manual categorization, Practically, this research informs practitioners including owners, auditing, and segmentation of over two decades of termination shareholders,advisors,andmorebroadly,stakeholders,ofstrategic reasons into a structured typology, we performed descriptive measures that may enhance the likelihood of M&A deal success. statistical analyses and regression modeling to identify significant Financial Advisor Misconduct and the Signaling Value of Certifications Anthony Zhu, Mark Egan Harvard College | Mather House | Economics | 2028 Certifications serve a critical function in signaling the quality certifications that are more costly to obtain are associated with of goods and services, particularly in markets where direct lower rates of misconduct, a significant number of certifications verificationisdifficult. However,marketfrictionsoftenundermine are linked to higher rates of misconduct. This raises the question the effectiveness of these signals. In the financial advisory of why advisors would pursue certifications that appear to signal industry, where misconduct risks are high, over 200 professional lower quality. We argue that the persistence of such certifications certifications are recognized by the Financial Industry Regulatory is driven by free entry into the certification market and limited Authority (FINRA). Yet concerns remain regarding their ability to consumer sophistication, which reduces the ability of clients to crediblysignaladvisorquality. Notably,7.3%offinancialadvisors distinguish between meaningful and frivolous credentials. These have a record of misconduct, and while approximately 20% hold at dynamics are further amplified by competition among certification least one certification, the reputability and effectiveness of many agencies, which may incentivize lower standards in pursuit of of these credentials remain in doubt. membership growth. Toexaminewhethercertificationsreliablyindicateadvisorquality, Currently, we are extending this project to incorporate newly we combined data from FINRA’s BrokerCheck database with available data from 2025 to examine whether recent market trends, multiple certification registries to analyze the relationship betweeregulatory changes, or shifts in consumer behavior have altered certification characteristics and advisor misconduct. Our findings these dynamics. revealed wide heterogeneity in certification quality. While
Abstract:
In the complex and frequently misunderstood domain of mergers patterns and causal relationships within terminated M&A deals. and acquisitions (M&A), this research project aims to understand Preliminary findings indicate insights into the diverse factors the underlying factors contributing to the failure and termination influencing M&A deal terminations, including the commonality of M&A deals. We systematically analyzed extensive empirical of deal cancellations, with approximately 10-20% of publicly data to identify and quantify how specific variables influenced announced transactions across a variety of industries collapsing the likelihood of deal termination. To achieve this objective, we due to regulatory, financing, strategic misalignment, or other conducted a rigorous literature review of over ten foundational reasons, and the impact of termination fees, typically ranging and contemporary studies focusing on M&A deal terminations. from 1% to 5% of enterprise value. Further, analysis of post- We also collected comprehensive data from 2000 to 2023 announcement stock price movements suggests asymmetric value using the Harvard Business School Baker Library’s LSEG creation, as targets typically experience neutral effects while Workspace SDC Deal Screener database, analyzing almost acquirors frequently face negative abnormal returns, indicating 300,000 different deals. Factors considered in the analysis a skew toward value creation for target firms. The theoretical range from political interventions, regulatory constraints, and contribution of this project lies in addressing the whitespace of variations in payment structures to country-specific characteristicsunderlyingreasonsthatdriveM&Adealterminations/withdrawals. and deal size. Following meticulous manual categorization, Practically, this research informs practitioners including owners, auditing, and segmentation of over two decades of termination shareholders,advisors,andmorebroadly,stakeholders,ofstrategic reasons into a structured typology, we performed descriptive measures that may enhance the likelihood of M&A deal success. statistical analyses and regression modeling to identify significant Financial Advisor Misconduct and the Signaling Value of Certifications Anthony Zhu, Mark Egan Harvard College | Mather House | Economics | 2028 Certifications serve a critical function in signaling the quality certifications that are more costly to obtain are associated with of goods and services, particularly in markets where direct lower rates of misconduct, a significant number of certifications verificationisdifficult. However,marketfrictionsoftenundermine are linked to higher rates of misconduct. This raises the question the effectiveness of these signals. In the financial advisory of why advisors would pursue certifications that appear to signal industry, where misconduct risks are high, over 200 professional lower quality. We argue that the persistence of such certifications certifications are recognized by the Financial Industry Regulatory is driven by free entry into the certification market and limited Authority (FINRA). Yet concerns remain regarding their ability to consumer sophistication, which reduces the ability of clients to crediblysignaladvisorquality. Notably,7.3%offinancialadvisors distinguish between meaningful and frivolous credentials. These have a record of misconduct, and while approximately 20% hold at dynamics are further amplified by competition among certification least one certification, the reputability and effectiveness of many agencies, which may incentivize lower standards in pursuit of of these credentials remain in doubt. membership growth. Toexaminewhethercertificationsreliablyindicateadvisorquality, Currently, we are extending this project to incorporate newly we combined data from FINRA’s BrokerCheck database with available data from 2025 to examine whether recent market trends, multiple certification registries to analyze the relationship betweeregulatory changes, or shifts in consumer behavior have altered certification characteristics and advisor misconduct. Our findings these dynamics. revealed wide heterogeneity in certification quality. While
Source:
Harvard / Harvard College | Dunster House | Applied Math | 2028 / 2025
Topics:
certification, deal, termination, misconduct, market, value, advisor, dynamic, factor, industry, regulatory, financial
