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Keywords: Accounting research, Banking, Mergers and acquisitions, Performance, USA The ongoing consolidation of the banking systems in the United States, Japan, and Western Europe has raised several critical issues concerning the private motives and public benefits or costs as larger, multi-market financial-service firms have reached out to acquire smaller, more localized banking firms. In the United States interstate bank expansion is absorbing a growing number of smaller banks across U. S. political boundaries. Unfortunately, we do not know, for example, whether cross-border bank acquirers tend to target distant firms with similar performance characteristics or whether the acquired firms are different initially, but are subsequently "remade" in the image of their acquirers, which may ultimately decrease potential geographic or product-line diversification benefits flowing from cross-border bank acquisitions. In this article we test for bank performance similarities and differences using canonical discriminant analysis between acquiring and acquired banks involved in cross-border acquisitions against other banks comparable in size and headquartered in both the acquirers' and acquired firms' market areas to determine if bank acquirers and their acquired companies are more alike performance-wise or are more dissimilar to each other than unrelated, but otherwise comparable institutions. The findings suggest that banks targeted for acquisition by large, multimarket banking companies are chosen less for their performance profiles and more for their particular market locations.
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Keywords: Economic theory, Developing countries, Development, Economic growth What is usually called development economics is a body of economic thought which emerged during the 1940s. This body of thought, which started in the works of writers such as Paul Rosenstein-Rodan, Nurske, Kuznets and many more, began not as a formal theoretical component of economic theory, but as a practical subject matter and advice to policy makers and governments in underdeveloped countries for the purpose of reducing poverty and backwardness. Among the earliest works in this branch of economics we can name Paul Rosenstein-Rodan's "Problems of Industrialization of Eastern and Southern Europe," (Economic Journal, 1943), Eugene Stanley's World Economic Development (1944), and Kurt Mandelbaum's Industrialization of Backward Areas (1947).
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Development economists of the 1940s and the 1950s focused only on the market failures associated with investment decisions in the field of development policy. This resulted in strong emphasis on investment planning with the optimistic belief that the installation of physical capital was enough to solve the problems of production. However, new studies in development economics have found 'new' market failures, suggesting that there is still an important role for the government in Pareto improvements.
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