The Effects of Cross-Border Bank Mergers on Bank Risk and Value

35 Pages Posted: 3 Nov 2008

See all articles by Yakov Amihud

Yakov Amihud

New York University - Stern School of Business

Gayle DeLong

Baruch College / City University of New York

Anthony Saundersc

affiliation not provided to SSRN

Multiple version iconThere are 4 versions of this paper

Date Written: March 2002

Abstract

This paper examines the effects of cross-border bank mergers on the risk and (abnormal) returns of acquiring banks. We find that overall, the acquirers risk neither increases nor decreases. In particular, on average neither their total risk nor their systematic risk fallsrelative to banks in their home banking market. The abnormal returns to acquirers arenegative and significant, but are somewhat higher when risk increases relative to banks in the acquirer s home country.

Keywords: Banks, Mergers, Market reaction, International business

Suggested Citation

Amihud, Yakov and DeLong, Gayle L. and Saundersc, Anthony, The Effects of Cross-Border Bank Mergers on Bank Risk and Value (March 2002). NYU Working Paper No. FIN-02-008. Available at SSRN: https://ssrn.com/abstract=1294175

Yakov Amihud (Contact Author)

New York University - Stern School of Business ( email )

44 West 4th Street
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212-998-0720 (Phone)
212-995-4233 (Fax)

Gayle L. DeLong

Baruch College / City University of New York ( email )

17 Lexington Avenue
New York, NY 10010
United States

HOME PAGE: http://zicklin.baruch.cuny.edu/faculty/economics/faculty/profiles/delong.html

Anthony Saundersc

affiliation not provided to SSRN

No Address Available

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