Announcement effects of bank mergers in Europe and the US

Bert Scholtens; Robert de Wit

doi:10.1016/j.ribaf.2004.04.002

Announcement effects of bank mergers in Europe and the US

Bert Scholtens^*, Robert de Wit

^*Corresponding author for this work

Centre for Responsible Banking and Finance

Research output: Contribution to journal › Article › peer-review

Abstract

We investigate the announcement effect of large bank mergers in the European and US stock market. Cumulative abnormal returns are calculated on the basis of the performance vis-à-vis the market and a sector index. Mergers result in small positive abnormal returns. Target banks realize significantly higher returns than bidders. In many respects, there is a difference between the announcement effects of European bank mergers compared to those in the US.

Original language	English
Pages (from-to)	217-228
Number of pages	12
Journal	Research in International Business and Finance
Volume	18
Issue number	2
DOIs	https://doi.org/10.1016/j.ribaf.2004.04.002
Publication status	Published - Jun 2004

Keywords

Announcement effects
Banking
Mergers and acquisitions
Shareholder wealth

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10.1016/j.ribaf.2004.04.002

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title = "Announcement effects of bank mergers in Europe and the US",

abstract = "We investigate the announcement effect of large bank mergers in the European and US stock market. Cumulative abnormal returns are calculated on the basis of the performance vis-{\`a}-vis the market and a sector index. Mergers result in small positive abnormal returns. Target banks realize significantly higher returns than bidders. In many respects, there is a difference between the announcement effects of European bank mergers compared to those in the US.",

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KW - Shareholder wealth

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Announcement effects of bank mergers in Europe and the US

Abstract

Keywords

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