Journal of Banking & Finance Vol. 135 2022
U.S. bank M&As in the post-Dodd–Frank Act era: Do they create value?
Abstract
We analyze the impact of the Dodd–Frank Act on the shareholder wealth gains using a sample of 640 completed U.S. M&As announced between 1990 and 2014. Our results indicate a positive DFA effect on announcement period abnormal returns in small bank mergers. In fact, mergers with combined firm assets of less than $10 billion create more shareholder value after the DFA, than ever before. This positive announcement effect in small deals appears to be linked with merger-related compliance cost savings and profitability improvements. By examining long-run abnormal returns, we find that the documented DFA effect on small deals announcement abnormal returns does not disappear overtime. Finally, we do not find such effects for non-U.S. bank M&As over the same period.
- DOI
- 10.1016/j.jbankfin.2019.06.008
- Volume
- 135
- Pages
- 105576
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref