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Using a large database of U.S. mergers and acquisitions (M&As) announced from 2010 through 2017, we examine the effects of capital ratio (leverage) on the announcement period stock price reaction as well as on longer-term stock returns and performance, for banks, making comparisons with...
Persistent link: https://www.econbiz.de/10013165300
Using 189 commercial bank mergers between 1997 and 2004, we document a positive impact of the merger activity on bank …
Persistent link: https://www.econbiz.de/10013150608
that the industry-adjusted operating performance of merged banks increases significantly after a merger. This finding is … significantly after a merger. Revenue enhancement opportunity appears to be more profitable if there exists more opportunity for …
Persistent link: https://www.econbiz.de/10012964750
How does bank integration affect the market for corporate control for nonfinancial firms? We provide causal evidence that interstate bank deregulation affects acquisitions mainly through reducing the information asymmetry between acquirers and targets, instead of increased credit supply. After...
Persistent link: https://www.econbiz.de/10012900778
reactions to the industry peers in the short term and FinTech merger waves in the long term …
Persistent link: https://www.econbiz.de/10013301485
The study compares the M&A effect on the profitability measures of 63 completed EU banks. The cumulative total standardised abnormal return (CTSAR), which is a proxy for M&A and a long window of 60 days, were used to capture the impact and trends in the profitability of both acquirers. The...
Persistent link: https://www.econbiz.de/10013142052
emphasizes the unchanged correlation of each independent variable to the dependent variable during the merger and restructuring …
Persistent link: https://www.econbiz.de/10012661269
they have a close relationship and that banks' cumulative shareholding by the pre-merger banks is non-linearly related to … find that the cumulative equity stake held by pre-merger banks is non-linearly related to firms' subsequent performance …, and the kink point is 5%. Using the bank merger events and the 5% rule as the exogenous shock for blockholders, our …
Persistent link: https://www.econbiz.de/10013058699
firm does not boost the overall value of the merger transaction. -- Merger ; acquisition ; target CEO ; corporate …
Persistent link: https://www.econbiz.de/10003730559
We find that stricter merger control legislation increases abnormal announcement returns of targets in bank mergers by … 7 percentage points. Analyzing potential explanations for this result, we document an increase in the pre-merger … other banks. Other merger properties, including the size and risk profile of targets, the geographic overlap of merging …
Persistent link: https://www.econbiz.de/10011518760