The Dynamics of Market Entry: The Effects of Mergers and Acquisitions on De Novo Entry and Small Business Lending in the Banking Industry

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

Center for Financial Institutions Working Papers from Wharton School Center for Financial Institutions, University of Pennsylvania

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entry following mergers and acquisitions (M&As), and the behavior of recent entrants in supplying output that might be withdrawn by the consolidating firms.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: Entry; Barriers to Entry; Bank; Mergers; Small Business (search for similar items in EconPapers)
JEL-codes: E58 G21 G28 G34 L89 (search for similar items in EconPapers)
Date: 2000-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Related works:
Working Paper: The dynamics of market entry: the effects of mergers and acquisitions on do novo entry and small business lending in the banking industry (1999)
Working Paper: The Dymanics of Market Entry: The Effects of Mergers and Acquisitions on De Novo Entry and Small Business Lending in the Banking Industry (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:wop:pennin:00-12

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