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This paper suggests a motive for bank mergers that goes beyond alleged and typically unverifiable scale economies: preemtive resolution of banks ́financial distress. Such "distress mergers" can be a significant motivation for mergers because they can foster reorganizations, realize...
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function with a timevariable stochastic efficiency term we show that positive scale and scope effects from a merger arise only … efficiency as the acquiring firms. For the post-merger phase, our empirical results provide no evidence for efficiency gains from …
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