The Effects of Bank Mergers on Corporate Information Disclosure

56 Pages Posted: 2 Apr 2014 Last revised: 31 May 2017

See all articles by Qi Chen

Qi Chen

Duke University - Fuqua School of Business

Rahul Vashishtha

Duke University

Date Written: May 1, 2017

Abstract

Applying a difference-in-differences approach to explore variations in the timing of bank mergers in the U.S. over the last two decades, we document an increase in borrowers’ disclosure when their banks engage in mergers and acquisitions. The effect is stronger among borrowers more reliant on services from the merging banks and when mergers cause larger changes in banks’ monitoring and financing of borrowers. These findings suggest an information spillover effect from bank mergers to the public financial markets, and have implications for how changes in banking markets affect the availability of public disclosure in the stock markets.

Keywords: Disclosure, Banks, Bank market structure, Mergers, Soft information

JEL Classification: M40, G21, G32, D82

Suggested Citation

Chen, Qi and Vashishtha, Rahul, The Effects of Bank Mergers on Corporate Information Disclosure (May 1, 2017). Journal of Accounting & Economics (JAE), Forthcoming. Available at SSRN: https://ssrn.com/abstract=2418752 or http://dx.doi.org/10.2139/ssrn.2418752

Qi Chen

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States
(919) 660-7753 (Phone)

Rahul Vashishtha (Contact Author)

Duke University ( email )

Durham, NC 27708-0204
United States
919-660-7755 (Phone)
91-660-7971 (Fax)

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