The Role of Public Relations Advisors in Acquisitions
Friday 21 February 2025, 10:15am to 11:30am
Venue
INF - Infolab C60b/c - View MapOpen to
Postgraduates, StaffRegistration
Registration not required - just turn upEvent Details
Accounting and Finance, Finance seminar presented by Dimitris Petmezas, Durham University. Paper title: The Role of Public Relations Advisors in Acquisitions.
Professor Dimitris Petmezas- Durham University Business School
Abstract
Bidders that employ top-tier public relations (PR) advisors have merger announcement returns that are 0.78% higher than other firms. The effect is driven by acquisitions of private companies, where returns are 1.33% higher. These are deals for which information about the target is sparser and communication more important. The effect is larger for smaller bidders and bidders with less analyst following. Propensity score matching and IV regressions support a causal interpretation. Our findings suggest that PR advisors can enhance deal quality due to their ability to communicate effectively with stakeholders, thus increasing the likelihood that proposed merger benefits are realized.
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Speaker
Durham University
Professor Dimitris Petmezas is a Professor of Finance in his second tenure at Durham University Business School as he also held the position of Lecturer in Finance over the period 2005-2007. Prior to taking up the current position he was a Professor, Reader and Senior Lecturer in Finance at Surrey Business School. Professor Petmezas was also a Visiting Scholar at University of Chicago Booth School of Business and New York University (NYU) Stern School of Business. He was educated at Aristotle Un
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