Corporate Assets and Enhancing Firm Value: Evidence from the Market for Bank Branches in the US

Karen Y. Jang ()
Additional contact information
Karen Y. Jang: Florida International University

Journal of Financial Services Research, 2020, vol. 57, issue 3, No 2, 253-286

Abstract: Abstract This study examines the purchase and sale of US bank branches. Large and unproductive banks with less capital sell branches to smaller and more efficient banks with more capital. I use an event study, and find a significant increase in value for both parties. These valuation effects are driven by slightly better operating performance, faster growth in loans, and a smooth transfer of purchased deposits for buyers and by improved operating performance and no substantial decrease in the growth of loans and deposits for sellers. Overall, the evidence shows that branch dealmakers operate efficiently by reallocating branches to better uses.

Keywords: Asset sale market; Post-deal firm performance; Commercial bank branches (search for similar items in EconPapers)
JEL-codes: G21 G34 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s10693-019-00317-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
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:kap:jfsres:v:57:y:2020:i:3:d:10.1007_s10693-019-00317-5

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10693

DOI: 10.1007/s10693-019-00317-5

Access Statistics for this article

Journal of Financial Services Research is currently edited by Haluk Unal

More articles in Journal of Financial Services Research from Springer, Western Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().