U.S. bank M&As in the post-Dodd–Frank Act era: Do they create value?

George Leledakis and Emmanouil G. Pyrgiotakis

Journal of Banking & Finance, 2022, vol. 135, issue C

Abstract: We analyze the impact of the Dodd–Frank Act on the shareholder wealth gains using a sample of 640 completed U.S. M&As announced between 1990 and 2014. Our results indicate a positive DFA effect on announcement period abnormal returns in small bank mergers. In fact, mergers with combined firm assets of less than $10 billion create more shareholder value after the DFA, than ever before. This positive announcement effect in small deals appears to be linked with merger-related compliance cost savings and profitability improvements. By examining long-run abnormal returns, we find that the documented DFA effect on small deals announcement abnormal returns does not disappear overtime. Finally, we do not find such effects for non-U.S. bank M&As over the same period.

Keywords: Dodd-Frank regulation; Shareholder wealth; Event study; Financial performance (search for similar items in EconPapers)
JEL-codes: G14 G21 G28 G34 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Working Paper: U.S. bank M&As in the post-Dodd-Frank Act era: Do they create value? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:135:y:2022:i:c:s037842661930144x

DOI: 10.1016/j.jbankfin.2019.06.008

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