The dynamics of market entry: the effects of mergers and acquisitions on do novo entry and small business lending in the banking industry

Allen Berger (), Seth D. Bonime, Lawrence G. Goldberg and Lawrence White

No 1999-41, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: We study the dynamics of market entry following mergers and acquisitions (M&As) and the behavior of recent entrants in supplying output that might be withdrawn by the consolidating firms. The data, drawn from the banking industry, suggest that M&As are associated with subsequent increases in the probability of entry. The estimates suggest that M&As explain more than 20% of entry in metropolitan markets and more than 10% of entry in rural markets. Additional results suggest that bank age has a strong negative effect on the small business lending of small banks but that M&As have little influence on this lending.

Keywords: Bank loans; Small business; Bank mergers (search for similar items in EconPapers)
Date: 1999
New Economics Papers: this item is included in nep-cfn and nep-ind
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Related works:
Working Paper: The Dynamics of Market Entry: The Effects of Mergers and Acquisitions on De Novo Entry and Small Business Lending in the Banking Industry (2000)
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