Bank Networks and Acquisitions

• 成果类型: Article
• 署名作者: Levine, Ross; Lin, Chen; Wang, Zigan
• 署名单位: University of California System; University of California Berkeley; National Bureau of Economic Research; University of Hong Kong
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2019.3428
• 发表日期: 2020
• 页码: 5216-5241
• 关键词: Mergers and acquisitions; VALUE CREATION; synergies

摘要

Does the predeal geographic overlap of the branches of two banks affect the probability that they merge, postannouncement stock returns, and postmerger performance? We compile information on U.S. bank acquisitions from 1984 through 2016, construct several measures of network overlap, and design and implement a new identification strategy. We find that greater predeal network overlap (1) increases the likelihood that two banks merge; (2) boosts the cumulative abnormal returns of the acquirer, target, and combined banks; and (3) reduces employment, boosts revenues, reduces the number of branches, improves loan quality, and expedites executive turnover.