Portfolioapproach:longthetarget/shorttheacquirer (1)positivealphaswhenadvisortakesposition (1) positive alphas when advisor takes position…

Portfolioapproach:longthetarget/shorttheacquirer (1)positivealphaswhenadvisortakesposition (1) positive alphas when advisor takes position (2)stillconsistentwithbothstories! Advisorsstakeinthetargetmakesthedealmorelikelyto succeed:consistentwithagencyconflictbutreverse succeed: consistent with agency conflict but reverse causality? Mergedentitysperformancedeclineswhentheadvisor hadastakeinthetargetfirm (1)consistentwithagencyconflict (2)butmarginaldeal? Beyondtheseexamples? Beyond these examples? Exantedetectionofcorporatemisbehavior? Detectionofinsidertrading? Detection of insider trading? Taxevasion? Understandingtheaggregateconsequenceof misbehavior?