 Do foreign bank investors promote acquirer bank value in Asia-Pacific countries?Yoko Shirasu and Yukihiro Yasuda The Quarterly Review of Economics and Finance, 2025, vol. 100, issue C Abstract: Mergers and acquisitions play a crucial part in global investment, particularly in the banking sector. We use comprehensive data on banks’ mergers and acquisitions in Asia-Pacific countries to investigate the performance implications of different types of foreign institutional investors holding equity stakes in acquirer banks. We find that acquirer banks with higher equity stakes from foreign bank investors experience an increase in their Q ratios, a proxy for bank value, and loan ratios in the three years post-acquisition when their income streams are diversified. By contrast, acquirer banks in which investment advisors or fund-type investors hold significant ownership stakes fail to expand their core business in the long run despite short-term cost reductions. Our findings suggest that bank-type foreign investors in Asia’s opaque banking industry improve acquirer bank performance through influential advisory functions. Keywords: Mergers and acquisitions; Foreign bank investors; Acquirer banks; Investor heterogeneity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:100:y:2025:i:c:s1062976925000043 DOI: 10.1016/j.qref.2025.101963 Access Statistics for this article The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty More articles in The Quarterly Review of Economics and Finance from Elsevier |
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