Acquisitions of solvent thrifts: wealth effects and managerial motivations

Article Abstract:

Empirical analysis of the wealth effects of voluntary acquisitions of solvent-stock-held savings institutions fro the late 1970s to the early 1990s shows losses in acquiring firms, significant earnings of target stockholders, and positive effects of mergers on the wealth of the bidder-target pair. Findings also reveal more losses in bidding firms involved in mergers before the passage of the Financial Institutions Reform, Recovery and Enforcement Act of 1989. Mergers which took place after the act showed small positive abnormal gains in acquisitions of solvent stock-held thrifts.

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The effect of mergers and acquisitions on the efficiency and profitability of EC credit institutions

Article Abstract:

Domestic mergers among partners of equal size substantially improve the performance of the merged banks. Cross-border acquisitions also spawn improved cost efficiency. Defensive and managerial motives such as size maximization are strong influences in domestic takeovers. These were the key findings in an examination of the performance effects of acquisitions and mergers between credit institutions in the European Community from 1988-1993.

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Mergers and shareholder wealth in European banking

Article Abstract:

A study of the stock market valuation of mergers and acquisitions in European banking shows a positive and significant rise in value for the average merger at the time the deal is announced.

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