| ||||
|
Abstract:
This paper uses a unique database that includes deal and bank balance sheet information for 220 cross-border acquisitions between 1994 and 2003 to analyze the characteristics and performance effects of international takeovers on target banks. A discrete choice estimation shows that banks are more likely to get acquired in a cross-border deal if they are large, bad performers, in a small country, and when the banking sector is concentrated. Post-acquisition performance for target banks does not improve in the first two years relative to domestically-owned financial institutions. This result is explained by a decrease in the banks' net interest margin in developed countries and an increase in overhead costs in emerging economies.
Full paper(494 KB PDF)
| Full paper (screen reader version)
PDF files: Adobe Acrobat Reader ZIP files: PKWARE Home | IFDPs | List of 2008 IFDPs Accessibility | Contact Us Last update: March 28, 2008 |
