The Announcement Effects of U.S. Versus Non-U.S. Bank Mergers: Do They Differ?
Posted: 11 Jun 2003
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
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