The Competing Risks of Acquiring and Being Acquired: Evidence from Colombia´s Financial Sector
Andres Garcia-Suaza () and
José Eduardo Goméz-Gonzáleza ()
Authors registered in the RePEc Author Service: Jose Eduardo Gomez-Gonzalez ()
Borradores de Economia from Banco de la Republica de Colombia
This paper studies the determinants of the probability of participating in a process of merging or acquisition for financial institutions in Colombia. We use survival analysis techniques and competing risks models to estimate the probability of participating in such processes as an acquiring or acquired firm. Using an especially rich database containing financial information of Colombian banks for the period 1990 - 2007, we find that both macroeconomic and microeconomic variables are important determinants of such probability. However, there are differential effects for the acquiring firm and the acquired firm. Particularly, while firm size and solvency result significant determinants of the probability of being an acquiring firm, efficiency is an important determinant of the probability of being acquired. Also, the concentration index, that plays no role for acquiring firms, plays an important role in the probability of being acquired.
Keywords: Survival analysis; competing risk models; Colombia. (search for similar items in EconPapers)
JEL-codes: C25 G21 G34 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Journal Article: The competing risks of acquiring and being acquired: Evidence from Colombia's financial sector (2010)
Working Paper: The Competing Risks of Acquiring and Being Acquired: Evidence from Colombia´s Financial Sector (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bdr:borrec:567
Access Statistics for this paper
More papers in Borradores de Economia from Banco de la Republica de Colombia Cra 7 # 14-78. Contact information at EDIRC.
Bibliographic data for series maintained by Clorith Angélica Bahos Olivera ().