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Post-Merger Performance of Bank Holding Companies, 1987-1998
Journal article   Open access

Post-Merger Performance of Bank Holding Companies, 1987-1998

Morris Knapp, Alan Gart and David Becher
The Financial review (Buffalo, N.Y.), v 40(4), pp 549-574
01 Nov 2005
url
https://doi.org/10.1111/j.1540-6288.2005.00124.xView
Published, Version of Record (VoR)Maybe Open Access (Publisher Bronze) Open

Abstract

Business & Economics Business, Finance Social Sciences
This paper examines the results of material mergers between bank holding companies (BHCs). Merged BHCs experience post-merger profitability below the industry average. The market reaction to the merger announcements is significantly negative. The most important causes of the poor post-merger performance are credit quality and the inadequate generation of fee income. Asset mix and capitalization also play a major part. The controllability of these items demonstrates the management challenge associated with a material merger.

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Domestic collaboration
Web of Science research areas
Business, Finance
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