| Tekijä: | Kane, E. |
| Otsikko: | Incentives for banking megamergers: what motives might regulators infer from event-study evidence? |
| Lehti: | Journal of Money, Credit and Banking
2000 : AUG, VOL. 32:3 PART 2, p. 671-701 |
| Asiasana: | INCENTIVES BANKING BENCHMARKING |
| Kieli: | eng |
| Tiivistelmä: | Methodologically, this paper frames the opportunity cost of any merger as the value of the alternative deals it precludes or defers. This challenges the standard event-study hypothesis that stock markets benchmark the value of a merger deal by the profits the partners would have earned in stand-alone activity. Substantively, the paper finds that megamergers in banking show two size-related exceptions to the prototypical result that acquirer stock value tends to be unaffected or to fall when a merger is announced. |
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