Journal of Banking & Finance Vol. 21 No. 10 1997
Acquisitions of solvent thrifts: Wealth effects and managerial motivations
Abstract
We examine voluntary acquisitions of solvent stock-held thrift institutions since 1979, and find that bidding firms suffered losses, target firms gained, and the impact of the merger on the bidder-target pair was positive on average. During the post-FIR-REA period acquirers experienced smaller losses and targets experienced smaller gains relative to the pre-FIRREA period. An investigation into the motives of bidding firm management provides evidence indicating the presence of synergy, agency, and hubris motivations in the pre-FIRREA period. Although the acquisitions environment underwent substantial changes in the post-FIRREA period, we find no evidence of corresponding changes in acquisition motivations.
- DOI
- 10.1016/s0378-4266(97)00026-5
- Volume
- 21
- Issue
- 10
- Pages
- 1431-1450
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib