Long-term strategic effects of mergers and acquisitions in Asia-Pacific banks

Yoko Shirasu

Finance Research Letters, 2018, vol. 24, issue C, 73-80

Abstract: This study empirically examines the effects of the Asian banks’ M&A, focusing on the long-term changes in banking management strategies for the acquirer banks. Target countries have tighter/more stringent legal and regulatory rules to ensure that the acquirer banks enjoy higher equity at lower cost. We find that Asian banks’ M&As contribute toward increasing new loans and enhancing capital adequacy. However, banks fail to make profits because of the non-performing loans. Most importantly, as part of cross-border deals, strong legal systems and stringent regulations could enable Asian banks to operate effectively by undertaking M&A between countries with different economic systems.

Keywords: Asian bank M&A; Strategy; Investor protection; Regulation; Capital (search for similar items in EconPapers)
JEL-codes: G15 G21 G34 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:24:y:2018:i:c:p:73-80

DOI: 10.1016/j.frl.2017.07.003

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