The Announcement Effects of U.S. Versus Non-U.S. Bank Mergers: Do They Differ?

Posted: 11 Jun 2003

See all articles by Gayle L. DeLong

Gayle L. DeLong

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

Abstract

Non-U.S. bank mergers are becoming an increasingly important part of the worldwide economic landscape. Are the market reactions to non U.S. bank mergers similar to the in the United States? I address this question by examining abnormal returns of publicly traded partners on the announcement of 41 non-U.S. bank mergers and comparing the returns with a U.S. control group. I find acquirers in non-U.S. domestic bank mergers earn more and non-U.S. targets earn less than their U.S. counterparts. However, for the subset of mergers in countries with relatively well developed stock markets, I find that partners earn similar returns.

JEL Classification: G14, G21, G34, F23

Suggested Citation

DeLong, Gayle L., The Announcement Effects of U.S. Versus Non-U.S. Bank Mergers: Do They Differ?. Available at SSRN: https://ssrn.com/abstract=390422

Gayle L. DeLong (Contact Author)

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

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