Who acquires whom among stand-alone commercial banks and bank holding company affiliates?

This paper presents the difference in the likelihood of being targets or acquirers among stand-alone banks, single-bank holding company (SBHC) affiliates and multi-bank holding company (MBHC) affiliates. Using a sample of U.S. commercial bank data from 1997 to 2012, we find that MBHC affiliates exhi...

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Main Authors: Kim Cuong Ly, Hong Liu, Kwaku Opong
Format: Default Article
Published: 2016
Subjects:
Law
Online Access:https://hdl.handle.net/2134/11800980.v1
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spelling rr-article-118009802016-11-15T00:00:00Z Who acquires whom among stand-alone commercial banks and bank holding company affiliates? Kim Cuong Ly (8397540) Hong Liu (6268211) Kwaku Opong (8397543) Other law and legal studies not elsewhere classified Merger Acquisition Bank holding company affiliates Stand-alone commercial banks Law This paper presents the difference in the likelihood of being targets or acquirers among stand-alone banks, single-bank holding company (SBHC) affiliates and multi-bank holding company (MBHC) affiliates. Using a sample of U.S. commercial bank data from 1997 to 2012, we find that MBHC affiliates exhibit a greater likelihood of being targets than do stand-alone commercial banks, while stand-alone banks have a greater probability of becoming targets than do SBHC affiliates. Our findings show that MBHC affiliates tend to have a greater likelihood of being acquirers than do SBHC affiliates, which again have a greater probability of being acquirers than do stand-alone banks. Those banks that acquire another bank within the same MBHC structure tend to be smaller and more financially constrained than those banks acquiring outside the same MBHC structure, whereas targets that are acquired by another bank within the same MBHC structure tend to be smaller, higher profitability and capital than targets that are acquired by banks from outside the MBHC structure. Our results suggest that the MBHC parent attempts to discipline distressed, poorly performing and smaller affiliates by involving them in mergers and acquisitions. 2016-11-15T00:00:00Z Text Journal contribution 2134/11800980.v1 https://figshare.com/articles/journal_contribution/Who_acquires_whom_among_stand-alone_commercial_banks_and_bank_holding_company_affiliates_/11800980 CC BY-NC-ND 4.0
institution Loughborough University
collection Figshare
topic Other law and legal studies not elsewhere classified
Merger
Acquisition
Bank holding company affiliates
Stand-alone commercial banks
Law
spellingShingle Other law and legal studies not elsewhere classified
Merger
Acquisition
Bank holding company affiliates
Stand-alone commercial banks
Law
Kim Cuong Ly
Hong Liu
Kwaku Opong
Who acquires whom among stand-alone commercial banks and bank holding company affiliates?
description This paper presents the difference in the likelihood of being targets or acquirers among stand-alone banks, single-bank holding company (SBHC) affiliates and multi-bank holding company (MBHC) affiliates. Using a sample of U.S. commercial bank data from 1997 to 2012, we find that MBHC affiliates exhibit a greater likelihood of being targets than do stand-alone commercial banks, while stand-alone banks have a greater probability of becoming targets than do SBHC affiliates. Our findings show that MBHC affiliates tend to have a greater likelihood of being acquirers than do SBHC affiliates, which again have a greater probability of being acquirers than do stand-alone banks. Those banks that acquire another bank within the same MBHC structure tend to be smaller and more financially constrained than those banks acquiring outside the same MBHC structure, whereas targets that are acquired by another bank within the same MBHC structure tend to be smaller, higher profitability and capital than targets that are acquired by banks from outside the MBHC structure. Our results suggest that the MBHC parent attempts to discipline distressed, poorly performing and smaller affiliates by involving them in mergers and acquisitions.
format Default
Article
author Kim Cuong Ly
Hong Liu
Kwaku Opong
author_facet Kim Cuong Ly
Hong Liu
Kwaku Opong
author_sort Kim Cuong Ly (8397540)
title Who acquires whom among stand-alone commercial banks and bank holding company affiliates?
title_short Who acquires whom among stand-alone commercial banks and bank holding company affiliates?
title_full Who acquires whom among stand-alone commercial banks and bank holding company affiliates?
title_fullStr Who acquires whom among stand-alone commercial banks and bank holding company affiliates?
title_full_unstemmed Who acquires whom among stand-alone commercial banks and bank holding company affiliates?
title_sort who acquires whom among stand-alone commercial banks and bank holding company affiliates?
publishDate 2016
url https://hdl.handle.net/2134/11800980.v1
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