|
|
|
|
||||
|
||||
Market Power, Bank Megamergers, And the Welfare of Bank BorrowersDonald R. FraserTexas A&M University - Department of Finance James W. KolariTexas A&M University - Department of Finance Seppo PynnonenUniversity of Vaasa - Department of Mathematics and Statistics T. Kyle TippensAbilene Christian University - College of Business Administration October 4, 2010 Journal of Financial Research, Vol. 34, pp. 641-658 Mays Business School Research Paper No. 2011-8 Abstract: We assess the effects on the welfare of corporate borrowers of the recent wave of bank consolidations in the United States that has produced a small number of very large banks. Our evidence from a sample of more than 3,000 commercial borrowers from banks involved in large mergers indicates that the wealth effects on these borrowers are highly negative, statistically significant, and economically important. These negative investor perceptions seem to be driven largely by the expectation of changes in banks’ market power resulting from the mergers.
Number of Pages in PDF File: 36 Keywords: Bank megamergers, bank mergers, market power JEL Classification: G14, G21, G28, G34 Accepted Paper SeriesDate posted: October 5, 2010 ; Last revised: December 19, 2011Suggested CitationContact Information
|
|
|||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo6 in 0.813 seconds
