Wealth effects of bank mergers and acquisitions in Asian emerging markets

Jianyu Ma, Jose Pagan, Yun Chu

Research output: Contribution to journalArticle

Abstract

Through analysis of stock responses to two different types of banking M&A deals, specifying M&A and diversifying M&A, we find that specifying M&A deals incur positive cumulative abnormal returns (CAR) in both two-day and three-day windows without controlling for firm size. Diversifying M&A deals incur positive CAR in two different event windows. However, the differences between the two windows are not statistically significant. Contrary to previous studies on M&A in the banking industry of developed markets, the results of our study indicate that markets do not distinguish among various types of M&A deals in the banking industry around the date of announcement. Diversifying M&A generate positive three-day CARs but they are not significantly better than specifying M&A.

Original languageEnglish (US)
Pages (from-to)47-58
Number of pages12
JournalJournal of Applied Business Research
Volume28
Issue number1
StatePublished - Jan 2012

Fingerprint

Banking industry
Asian emerging markets
Wealth effect
Bank mergers
Mergers and acquisitions
Bank acquisitions
Cumulative abnormal return
Banking
Firm size
Announcement

Keywords

  • Asian emerging markets
  • Banks
  • Mergers and Acquisitions

ASJC Scopus subject areas

  • Business and International Management

Cite this

Wealth effects of bank mergers and acquisitions in Asian emerging markets. / Ma, Jianyu; Pagan, Jose; Chu, Yun.

In: Journal of Applied Business Research, Vol. 28, No. 1, 01.2012, p. 47-58.

Research output: Contribution to journalArticle

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