KARCESKI, JASON; ONGENA, STEVEN; SMITH, DAVID C. - In: Journal of Finance 60 (2005) 4, pp. 2043-2082
We estimate the impact of bank merger announcements on borrowers' stock prices for publicly traded Norwegian firms. Borrowers of target banks lose about 0.8% in equity value, while borrowers of acquiring banks earn positive abnormal returns, suggesting that borrower welfare is influenced by a...