Download or read book Bank Mergers Acquisitions written by Yakov Amihud and published by Springer Science & Business Media. This book was released on 1998-02-28 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: As the financial services industry becomes increasingly international, the more narrowly defined and historically protected national financial markets become less significant. Consequently, financial institutions must achieve a critical size in order to compete. Bank Mergers & Acquisitions analyses the major issues associated with the large wave of bank mergers and acquisitions in the 1990's. While the effects of these changes have been most pronounced in the commercial banking industry, they also have a profound impact on other financial institutions: insurance firms, investment banks, and institutional investors. Bank Mergers & Acquisitions is divided into three major sections: A general and theoretical background to the topic of bank mergers and acquisitions; the effect of bank mergers on efficiency and shareholders' wealth; and regulatory and legal issues associated with mergers of financial institutions. It brings together contributions from leading scholars and high-level practitioners in economics, finance and law.
Download or read book Efficiency Effects of Bank Mergers in the US Market written by and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This bachelor thesis analyses efficiency effects of mergers and acquisitions in the US banking industry. For that reason 99 mergers and acquisitions are examined that have taken place during 2000-2010. Performance-adjusted accounting data of 99 US acquirers is analyzed in a univariate research model on the one hand and in a multivariate multiple-linear-regression model on the other hand. Results suggest that there is no observable improvement in post-merger efficiency and post-merger performance. In fact, performance even worsens slightly in the post-merger period. Merging banks are facing increasing costs while income does not change significantly. This decrease in performance is attributable to the negative effects of the financial crisis, which had a significantly negative influence on post-merger performance of merging banks.
Download or read book Bank Mergers Acquisitions written by Yakov Amihud and published by Springer Science & Business Media. This book was released on 2013-04-17 with total page 249 pages. Available in PDF, EPUB and Kindle. Book excerpt: As the financial services industry becomes increasingly international, the more narrowly defined and historically protected national financial markets become less significant. Consequently, financial institutions must achieve a critical size in order to compete. Bank Mergers & Acquisitions analyses the major issues associated with the large wave of bank mergers and acquisitions in the 1990's. While the effects of these changes have been most pronounced in the commercial banking industry, they also have a profound impact on other financial institutions: insurance firms, investment banks, and institutional investors. Bank Mergers & Acquisitions is divided into three major sections: A general and theoretical background to the topic of bank mergers and acquisitions; the effect of bank mergers on efficiency and shareholders' wealth; and regulatory and legal issues associated with mergers of financial institutions. It brings together contributions from leading scholars and high-level practitioners in economics, finance and law.
Download or read book Effects of US Bank Mergers on Bank Risk and Value written by Ingo Forbriger and published by GRIN Verlag. This book was released on 2007-07 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2006 in the subject Business economics - Investment and Finance, grade: 1,3, Humboldt-University of Berlin (Institut f r Bank- und B rsenwesen), course: Hauptseminar Finanzierung, 20 entries in the bibliography, language: English, abstract: This paper observes the impacts of domestic US commercial bank M&As in the 1990s on individual institutions. It shows potential changes in a bank's risk exposure and how these can affect a merged bank's value. It provides a theoretical consideration as well as a review of empirical studies. The result is that a merger might lead to a risk benefit. In this case, there is, c.p., potential for a value increase. Empirically, risk benefits were either absent or offset by managers' higher risk taking.
Download or read book Short term Long term and Efficiency Impacts of Recent Mergers and Acquisitions in the U S Banking Industry written by and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines the wealth effects of bank mergers on bidder, target, and combined firm shareholders for a sample of 785 mergers during the period 1980-2000. The dissertation employs two unique bank event study methodologies to calculate abnormal returns for bidder, target and combined firms. The first methodology is a modified market model that controls for shocks common to the banking industry. The second is an EGARCH (1,1) model that adjusts for the violated regression assumptions of the traditional market model event study. Namely, it controls for the linearity assumption, heteroskedasticity, and the correlation in the error term. The results of both methodologies reveal that target shareholders enjoy significantly positive abnormal returns, whereas the bidder shareholders experience significantly negative abnormal returns. Overall, announcements of bank mergers generate positive wealth effects for the combined shareholders. However, the evidence presented in this dissertation, to some extent, underscores the importance of the choice of models describing stock returns in examining the impact of bank mergers. In addition, when mergers are analyzed to determine the effects of relative size and relative book-to-market values, we find evidence that the relative size significantly affects the target, bidder and combined firm return; method of payment is also found to be significant in abnormal returns. Moreover, we find that the number of bidders affects only the bidder returns, while book-to-market values are irrelevant factors.
Download or read book The Bank Merger Wave The Economic Causes and Social Consequences of Financial Consolidation written by Gary Dymski and published by Routledge. This book was released on 2016-09-16 with total page 356 pages. Available in PDF, EPUB and Kindle. Book excerpt: This far-reaching study shows that operating efficiencies are not what are driving today's unrelenting bank merger mania. It suggests that bank mergers and consolidation may have effects that are contrary to consumer and non-financial business interests, such as lower rates of interest, increasing fees, and tighter credit constraints. Dymski recommends several new policies to apply to the evaluation of prospective mergers.
Download or read book Determinants of Cost Efficiencies in Bank Mergers written by Robert DeYoung and published by . This book was released on 1993 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Dynamics of Market Entry written by Allen N. Berger and published by . This book was released on 1999 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Efficiency Effects of Bank Mergers and Acquisitions written by Harry Huizinga and published by . This book was released on 2001 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mergers and Acquisitions in the U S Banking Industry written by Gabriel A. Hawawini and published by North Holland. This book was released on 1990 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt: Presented in this book is a comprehensive empirical analysis of mergers and acquisitions in the U.S. banking industry. The purpose of the study is to examine the merger phenomenon in the banking industry by answering the following questions: - What are the incentives for banks to merge? - Has the prohibition of interstate banking prevented banks from diversifying and has it increased the rate of bank failures by restricting (geographical) diversification opportunities? - Are bank mergers wealth-creating activities and how are the gains/losses from a merger distributed between the acquiring and acquired bank shareholders? - How can the changes in shareholder wealth resulting from bank mergers be explained and are there differences between interstate and intrastate mergers? - What are the implications of the study's findings for regulatory policy? Theory and practical implications are blended in this book which should appeal to both academics and practitioners in the field
Download or read book Oversight Hearing on the Proposed Merger Between Bank of America and Security Pacific Bank written by United States. Congress. Senate. Committee on Appropriations. Subcommittee on Treasury, Postal Service, and General Government and published by . This book was released on 1992 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effect of Bank Mergers on Loan Prices written by Isil Erel and published by . This book was released on 2009 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bank mergers can increase or decrease loan spreads, depending on whether the increased market power outweighs efficiency gains. Using proprietary loan-level data for U.S. commercial banks, I find that, on average, mergers reduce loan spreads, with the magnitude of the reduction being larger when post-merger cost savings increase. My results suggest that the relation between spreads and the extent of market overlap between merging banks is non-monotonic. Market overlap increases cost savings and consequently lowers spreads, but when the overlap is sufficiently large, spreads increase, potentially due to the market-power effect dominating the cost savings. Furthermore, the average reduction in spreads is significant for small businesses.
Download or read book Bank Mergers Current Issues and Perspectives written by Benton E. Gup and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt: Historians of our financial system will record this as an age of deregulation and bank mergers. Deregulation, a cornerstone of President Reagan's Administration, resulted in federal and state legislation that contributed to increased competition for financial services and increased merger activity. During the 1981-1986 period, there were 2,139 mergers in banking and finance, accounting for 16 percent of total merger activity.l More mergers occurred in banking and finance than in any other industry. Because of these bank mergers, there are vast amounts of data avail able for scholarly research. This book presents some results of that research which will be of interest to academics, bankers, investors, legislators, and regulators. The book consists of ten articles, and it is divided into three parts. Part 1: National and Regional Bank Mergers gives a broad perspective of merger activity. The first article by Peter S. Rose compared the growth of bank holding companies that merged with those that did not merge. One conclusion of his study was that banks planning mergers tended to be aggressively managed and were often beset by problems, such as low profitability or declining loan quality. Mergers were one solution to their problems. But he found no solid evidence that mergers resulted in greater profitability or reduced risk. He also observed that acquiring banks did not seem to grow faster than those choosing not to merge.
Download or read book Banking Consolidation in the EU written by Rym Ayadi and published by CEPS. This book was released on 2004 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Consolidation of the Financial Services Industry written by Allen N. Berger and published by . This book was released on 1998 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This article designs a framework for evaluating the causes, consequences, and future implications of financial services industry consolidation, reviews the extant research literature within the context of this framework (over 250 references), and suggests fruitful avenues for future research. The evidence is consistent with increases in market power from some types of consolidation; improvements in profit efficiency and diversification of risks, but little or no cost efficiency improvements on average; relatively little effect on the availability of services to small customers; potential improvements in payments system efficiency; and potential costs on the financial system from increasing systemic risk or expanding the financial safety net"--Abstract.
Download or read book Is the Bank Merger Wave of the 1990s Efficient written by Charles W. Calomiris and published by A E I Press. This book was released on 1998 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book discusses banking, insurance, and securities regulation, as well as issues in consumer finance and electronic commerce. In a new era of deregulation, the US banking system is undergoing dramatic consolidation. The authors use detailed case studies to determine the motivation for bank mergers, assess the advertised gains in efficiency and services, and resolve inconsistencies between econometric studies and comparisons of performance in different US states and different countries. As merger activity intensifies, the volume explains both the acceleration of merger activity and the rationales for recent megamergers. The authors also explore the link between consolidation and global competitiveness and dissect client-based universal banking.
Download or read book Local Market Consolidation and Bank Productive Efficiency written by Douglas D. Evanoff and published by . This book was released on 2013 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent banking literature has evaluated the impact of mergers on the efficiency of the merging parties [e.g., Rhoades (1993), Shaffer (1993), Fixler and Zieschang (1993)]. Similarly, there has been analysis of the impact of eliminating bank entry restrictions on the average performance of banks [Jayaratne and Strahan (1998)]. The evidence suggests that acquiring banks are typically more efficient than are acquired banks, resulting in the potential for the new combined organization to be more efficient and, therefore, for the merger to be welfare enhancing. The evidence also suggests, however, that these potential gains are often not realized. This has led some to question the benefits resulting from the recent increase in bank merger activity. We take a somewhat more comprehensive and micro-oriented approach and evaluate the impact of actual and potential competition resulting from market-entry mergers and reductions in entry barriers on bank efficiency. In particular, in addition to the efficiency gains realized by the parties involved in a bank merger, economic theory argues that additional efficiency gains should result from the impact of the merger on the degree of local market competition. We therefore examine the impact of increased competition resulting from mergers and acquisitions on the productive efficiency of incumbent banks. Our findings are consistent with economic theory: As competition increases as a result of entry or the creation of a more viable local competitor, the incumbent banks respond by increasing their level of cost efficiency. We find this efficiency increase to be in addition to any efficiency gains resulting from increases in potential competition occurring with the initial elimination of certain entry barriers. Thus, consistent with economic theory, new entrants and reductions in entry barriers lead incumbent firms to increase their productive efficiency to enable them to be viable in the more competitive environment. Studies evaluating the impact of bank mergers on the efficiency of the combining parties alone may be overlooking the most significant welfare enhancing aspect of merger activity. We do not find evidence of profit efficiency gains. In fact, the mergers are associated with decreases in profit efficiency; perhaps indicating that revenues may also be competed away from incumbents as a result of mergers.
