Learning by observing: Information spillovers in the execution and valuation of commercial bank M&As

• 成果类型: Article
• 署名作者: Delong, Gayle; Deyoung, Robert
• 署名单位: City University of New York (CUNY) System; Baruch College (CUNY); Federal Deposit Insurance Corporation (FDIC); Federal Reserve System - USA; Federal Reserve Bank - Chicago
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2007.01205.x
• 发表日期: 2007
• 页码: 181-216
• 关键词: performance; MARKET; mergers; gains; acquisitions; MEGAMERGERS; KNOWLEDGE; returns; FIRMS; size

摘要

We offer a new explanation for why academic studies typically fail to find value creation in bank mergers. Our conjectures are predicated on the idea that, until recently, large bank acquisitions were a new phenomenon, with no best practices history to inform bank managers or market investors. We hypothesize that merging banks, and investors pricing bank mergers, learn by observing information that spills over from previous bank mergers. We find evidence consistent with these conjectures for 216 M&As of large, publicly traded U.S. commercial banks between 1987 and 1999. Our findings are consistent with semistrong stock market efficiency.