Regulatory Arbitrage and Cross-Border Bank Acquisitions

• 成果类型: Article
• 署名作者: Karolyi, G. Andrew; Taboada, Alvaro G.
• 署名单位: Cornell University; University of Tennessee System; University of Tennessee Knoxville
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12262
• 发表日期: 2015
• 页码: 2395-2450
• 关键词: investor protection; mergers; RISK; determinants; governance; PRODUCTIVITY; CONVERGENCE; performance; COMPETITION; EFFICIENCY

摘要

We study how differences in bank regulation influence cross-border bank acquisition flows and share price reactions to cross-border deal announcements. Using a sample of 7,297 domestic and 916 majority cross-border deals announced between 1995 and 2012, we find evidence of a form of regulatory arbitrage whereby acquisition flows involve acquirers from countries with stronger regulations than their targets. Target and aggregate abnormal returns around deal announcements are positive and larger when acquirers come from more restrictive bank regulatory environments. We interpret this evidence as more consistent with a benign form of regulatory arbitrage than a potentially destructive one.