How Did the Asian Stock Markets React to Bank Mergera after the 1997 Financial Crisis?

Céline Meslier-Crouzille (), Laetitia Lepetit and Carlos Bautista
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Céline Meslier-Crouzille: LAPE - Laboratoire d'Analyse et de Prospective Economique - GIO - Gouvernance des Institutions et des Organisations - UNILIM - Université de Limoges
Authors registered in the RePEc Author Service: Celine Meslier Crouzille ()

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Abstract: The objective of this paper is to empirically assess the stock market reaction to the announcement of bank mergers and acquisitions (M&As) in eight East Asian countries over the 1997-2003 period. M&As are classified according to the status of entity, the time period of the deal and the maturity of the banking system. A bivariate GARCH model is used to estimate abnormal returns taking beta conditional variability into account. We find that the market reacted negatively to M&As during the crisis period (1997-2000) and also in the less mature banking systems (Indonesia, Malaysia, the Philippines, South Korea and Thailand).

Keywords: Mergers and Acquisitions; Banking; Event study; Consolidation process (search for similar items in EconPapers)
Date: 2008-05
Note: View the original document on HAL open archive server: https://unilim.hal.science/hal-00828518
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Citations: View citations in EconPapers (5)

Published in Pacific Economic Review, 2008, 13 (2), pp.171-182. ⟨10.1111/j.1468-0106.2008.00395.x⟩

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Journal Article: HOW DID THE ASIAN STOCK MARKETS REACT TO BANK MERGERS AFTER THE 1997 FINANCIAL CRISIS? (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00828518

DOI: 10.1111/j.1468-0106.2008.00395.x

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