misvaluation merger theories. Test results are consistent with evidence in the literature that merger activity is significantly … misvaluation reflect a rise in industry-wide risk taking and that increases in risk originate from changes in industry structure … due to deregulation. A measure of bank risk taking subsumes the power of stock price misvaluation to explain subsequent …

measures. Contrary to the subadditivity assumption, bank mergers can create extra risk. We begin with an analysis how a merger …This paper provides a critical analysis of the subadditivity axiom, which is the key condition for coherent risk … interbank loans, a bank merger could lead to additional contagion risks. We conclude that the subadditivity assumption should be …

.Design/methodology/approachThis research examines the impact and association between merger announcements and regulatory reforms at bank and system levels by … institutions’ systematic risk. We then develop an index of the estimated equity value loss as the long-rum marginal expected … shortfall (LRMES). LRMES contributes to compute systemic risk (SRISK) contribution of these firms, which is the capital that a …