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

36 Pages Posted: 4 Nov 2008

See all articles by Yakov Amihud

Yakov Amihud

New York University - Stern School of Business

Gayle L. DeLong

City University of New York, Baruch College - Zicklin School of Business - Department of Economics and Finance

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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.

Suggested Citation

Amihud, Yakov and DeLong, Gayle L., The Effects of Cross-Border Bank Mergers on Bank Risk and Value (March 2002). NYU Working Paper No. S-CG-02-03. Available at SSRN: https://ssrn.com/abstract=1295263

Yakov Amihud (Contact Author)

New York University - Stern School of Business ( email )

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Gayle L. DeLong

City University of New York, Baruch College - Zicklin School of Business - Department of Economics and Finance ( email )

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HOME PAGE: http://faculty.baruch.cuny.edu/gdelong

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