Some estimates of the marginal values of cash reported in existing literature appear inconsistent with economic common sense. We establish reasonable benchmark values for the marginal value of cash based on economic theory and empirical evidence. In various samples and contexts, the estimates of...

Contrary to earlier studies, we find that prior client performance is a significant determinant of the likelihood that an investment bank will be chosen as the advisor by future acquirers and that prior client performance is a significant determinant of the changes through time in banks' shares...