Post-Merger Performance of Bank Holding Companies, 1987-1998
This paper examines the results of material mergers between bank holding companies (BHCs). Merged BHCs experience post-merger profitability below the industry average. The market reaction to the merger announcements is significantly negative. The most important causes of the poor post-merger performance are credit quality and the inadequate generation of fee income. Asset mix and capitalization also play a major part. The controllability of these items demonstrates the management challenge associated with a material merger. Copyright 2005 by the Eastern Finance Association.
Year of publication: |
2005
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Authors: | Knapp, Morris ; Gart, Alan ; Becher, David |
Published in: |
The Financial Review. - Eastern Finance Association - EFA. - Vol. 40.2005, 4, p. 549-574
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Publisher: |
Eastern Finance Association - EFA |
Saved in:
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