Bank Growth Choices and Changes in Market Performance

Posted: 24 Mar 2000

See all articles by Ken B. Cyree

Ken B. Cyree

University of Mississippi - School of Business Administration

James W. Wansley

University of Tennessee

Harold A. Black

University of Tennessee, Knoxville - Department of Finance

Abstract

Changes in bank market performance are compared for banks that choose not to grow, to branch, bank acquire, product expand, or some combination. Using the change in market value-to-book value ratios, banks that include acquiring other banks as part of their growth strategy have significantly positive changes in performance. Positive performance by bank acquirers is in contrast to many studies, but prior research has not reviewed other growth activities in a single model, nor used market-based measures to review performance over longer time periods following bank expansion.

JEL Classification: G21

Suggested Citation

Cyree, Ken B. and Wansley, James W. and Black, Harold A., Bank Growth Choices and Changes in Market Performance. Available at SSRN: https://ssrn.com/abstract=204751

Ken B. Cyree

University of Mississippi - School of Business Administration ( email )

PO Box 3986
Oxford, MS 38677
United States

James W. Wansley (Contact Author)

University of Tennessee ( email )

428 Stokely Management Center
Knoxville, TN 37996
United States

Harold A. Black

University of Tennessee, Knoxville - Department of Finance ( email )

Knoxville, TN 37996
United States
423-974-1721 (Phone)
423-974-1716 (Fax)

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