Cross-Border Bank Mergers: What Lures the Rare Animal?

Gayle L. DeLong and Claudia Buch

No 1070, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: Although domestic mergers and acquisitions (M&As) in the financial services industry have increased steadily over the past two decades, international M&As were relatively rare until recently. This paper uses a novel dataset of over 2,300 mergers that took place between 1978 and 2001 to analyse the determinants of international bank mergers. We test the extent to which information costs and regulations hold back merger activity. Our results suggest that banks operating in more regulated environments are less likely to be the targets of international bank mergers. Hence, the lifting of regulations can spur growth in cross-border bank mergers. Also, mergers tend to be less frequent if information costs are high.

Keywords: cross-border banking; information costs; regulations; mergers and acquisitions (search for similar items in EconPapers)
JEL-codes: F21 G21 (search for similar items in EconPapers)
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/17888/1/kap1070.pdf (application/pdf)

Related works:
Journal Article: Cross-border bank mergers: What lures the rare animal? (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1070

Access Statistics for this paper

More papers in Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().