Gains in bank mergers: Evidence from the bond markets

• 成果类型: Article
• 署名作者: Penas, MF; Unal, H
• 署名单位: University System of Maryland; University of Maryland College Park; Tilburg University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2003.05.004
• 发表日期: 2004
• 页码: 149-179
• 关键词: bank mergers; bondholder gains; Too big to fail

摘要

We present evidence that the adjusted returns of merging banks' bonds are positive and significant across pre-merger and announcement months. The cross-sectional evidence indicates that the primary determinants of merger-related bondholder gains are diversification gains, gains associated with achieving too-big-to-fail status, and, to a lesser degree, synergy gains. We obtain the same finding when we examine the acquiring banks' credit spreads on new debt issues both before and after the merger. We also provide the first study that shows acquirers benefit by the lower cost of funds on post-merger debt issues. (C) 2004 Elsevier B.V. All rights reserved.