Journal of Financial Economics, Vol. 50, November 1998
Posted: 12 Nov 1998
This paper examines the effects of over 6,000 recent U.S. bank mergers and acquisitions (M&As) on small business lending. It is the first to decompose the impact of M&As into static effects from simply combining the institutions into a pro forma larger organization, and dynamic effects associated with post-M&A refocusing of the consolidated institution. It is also the first to estimate the external effect -- the dynamic reactions of other local banks. It is found that the static effects of M&As tend to reduce small business lending, but are mostly offset by the reactions of other banks, and in some cases also by refocusing efforts of the consolidating institutions themselves.
Notes: This is a description of the article and is not the actual abstract.
Suggested Citation: Suggested Citation
Berger, Allen N. and Saunders, Anthony and Udell, Gregory F. and Scalise, Joseph M., The Effects of Bank Mergers and Acquisitions on Small Business Lending. Journal of Financial Economics, Vol. 50, November 1998. Available at SSRN: https://ssrn.com/abstract=137993