Skip navigation

The Effects of Cross-Border Bank Mergers on Bank Risk and Value

Authors: Amihud, Yakov
DeLong, Gayle L.
Saunders, Anthony
Issue Date: Mar-2002
Series/Report no.: S-FI-02-04
Abstract: This paper examines the effects of cross-border bank mergers on the risk and (abnormal) returns of acquiring banks. We find that overall, the acquirers’ risk neither increases nor decreases. In particular, on average neither their total risk nor their systematic risk falls relative to banks in their home banking market. The abnormal returns to acquirers are negative and significant, but are somewhat higher when risk increases relative to banks in the acquirer’s home country.
Appears in Collections:Financial Institutions

Files in This Item:
File Description SizeFormat 
S-FI-02-04.pdf92.23 kBAdobe PDFView/Open

Items in FDA are protected by copyright, with all rights reserved, unless otherwise indicated.