Client Firms and Bank Mergers: Positive Wealth Effect of Bank Mergers on Distressed Firms

Kensuke Tetsuya ()
Additional contact information
Kensuke Tetsuya: Department of Economics, Himeji Dokkyo University, 7-2-1 Kamiohono Himeji Hyougo, 670-8524, Japan

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2005, vol. 08, issue 01, 113-130

Abstract: Using the event study method, Karceskiet al. (2000) and Shinet al. (2003) determined that investors expected bank mergers to adversely impact some of the borrowing firms. Earlier studies on the effects of banking merger on borrower have not sufficiently considered the relationship between the economic conditions of the borrowers and the wealth effect of the bank mergers. Using the events study method, we investigated whether the news of several bank mergers between Japanese banks affected the market value of financially distressed borrowers. We found that news of bank mergers brought about a positive wealth effect on financially distressed borrowers.

Keywords: Event studies; merger of banks; distressed firms (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219091505000282
Access to full text is restricted to subscribers

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:wsi:rpbfmp:v:08:y:2005:i:01:n:s0219091505000282

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219091505000282

Access Statistics for this article

Review of Pacific Basin Financial Markets and Policies (RPBFMP) is currently edited by Cheng-few Lee

More articles in Review of Pacific Basin Financial Markets and Policies (RPBFMP) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().