Bank mergers and acquisitions in emerging markets: evidence from Asia and Latin America

Molyneux, Philip, Goddard, John and Zhou, Tim (2011) Bank mergers and acquisitions in emerging markets: evidence from Asia and Latin America. The European Journal of Finance. ISSN 1351-847X

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Following a global wave of consolidation in the banking industry, this study analyses 132 mergers and acquisitions (M&As) involving banks in emerging markets in Asia and Latin America between 1998 and 2009. An event study measures the change in shareholder value for acquirers and targets; and a multivariate regression identifies the drivers of the change in shareholder value for acquirers. On average M&A creates shareholder value for target firms, while acquirer firms do not lose shareholder value. Geographical diversification creates shareholder value for acquirers. Acquirer shareholders benefit from the acquisition of underperforming targets; from transactions settled by cash rather than exchange of equity; and from government-instigated M&A transactions.

Item Type: Article
Additional Information: Published online ahead of print, 22 August 2011
Uncontrolled Keywords: banks, emerging markets, mergers and acquisitions
Subjects: Business and Management > Accounting and Finance
Divisions: Faculty of Business, Law and Tourism > School of Business
Depositing User: Tim Zhou
Date Deposited: 28 Feb 2012 10:42
Last Modified: 30 Sep 2020 11:05

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