Title: Boundary spanning roles of financial advisors in M&As

Authors: Young Jin Ko; Sunny Li Sun

Addresses: Sungkyunkwan University, 25-2, Seonggyungwan-ro, Seoul, South Korea ' Robert J. Manning School of Business, University of Massachusetts Lowell, Lowell, Massachusetts 01854, USA

Abstract: How do investment banks (IBs) span informational boundaries and influence mergers and acquisitions (M&As)? By linking boundary-spanning with a network embeddedness perspective, we redefine the boundaries of focal firms and the roles of IBs. In particular, in the process of acquisition, firms build intra-firm ties by hiring IBs and relying on their inter-firm networks. We argue that IBs perform both an information-obtaining and an information-disseminating role across internal and external boundaries. IBs' informational boundary-spanning roles become especially salient when targeting private firms. By analysing 1776 M&A deals with a series of interviews in China, we provide support for our predictions and suggest that IBs are rainmakers rather than supportive agents.

Keywords: mergers and acquisitions; intra-firm ties; inter-firm networks; informational boundary spanning.

DOI: 10.1504/EJIM.2026.152249

European Journal of International Management, 2026 Vol.28 No.4, pp.555 - 581

Received: 23 Oct 2020
Accepted: 23 Nov 2020
Published online: 13 Mar 2026 *

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