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

35 Pages Posted: 11 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

Anthony Saunders

New York University - Leonard N. Stern School of Business

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 falls relative to banks in their home banking market. The abnormal returns to acquirers are negative 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. and Saunders, Anthony, The Effects of Cross-Border Bank Mergers on Bank Risk and Value (March 2002). NYU Working Paper No. S-FI-02-04, Available at SSRN: https://ssrn.com/abstract=1298818

Yakov Amihud (Contact Author)

New York University - Stern School of Business ( email )

44 West 4th Street
Suite 9-190
New York, NY 10012-1126
United States
212-998-0720 (Phone)
212-995-4233 (Fax)

Gayle L. DeLong

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

One Bernard Baruch Way
Box B 10-225
New York, NY 10010
United States
646-312-3493 (Phone)
646-312-3451 (Fax)

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

Anthony Saunders

New York University - Leonard N. Stern School of Business ( email )

44 West 4th Street
9-190, MEC
New York, NY 10012-1126
United States
212-998-0711 (Phone)
212-995-4220 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
127
Abstract Views
3,590
Rank
27,138
PlumX Metrics