Who acquires whom among stand-alone commercial banks and bank holding company affiliates?

Ly, Kim Cuong; Liu, Hong; Opong, Kwaku

doi:10.1016/j.irfa.2016.11.003

Journal article 790 views 129 downloads

Who acquires whom among stand-alone commercial banks and bank holding company affiliates?

Kim Cuong Ly

, Hong Liu, Kwaku Opong

International Review of Financial Analysis, Volume: 54, Pages: 144 - 158

Swansea University Author: Kim Cuong Ly

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DOI (Published version): 10.1016/j.irfa.2016.11.003

Abstract

This paper presents the difference in the likelihood of being targets or acquirers among stand-alone banks, single-bank holding company (SBHC) affiliates and multi-bank holding company (MBHC) affiliates. Using a sample of U.S. commercial bank data from 1997 to 2012, we find that MBHC affiliates exhi...

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Published in:	International Review of Financial Analysis
ISSN:	1057-5219
Published:	Elsevier BV 2017
Online Access:	Check full text
URI:	https://cronfa.swan.ac.uk/Record/cronfa31580
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first_indexed	2017-01-05T20:42:31Z
last_indexed	2020-07-31T18:48:23Z
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spelling	2020-07-31T15:10:42.8663172 v2 31580 2017-01-05 Who acquires whom among stand-alone commercial banks and bank holding company affiliates? 06f8b2f66ecfb3ec21bd129e86e3e0ea 0000-0001-5856-4560 Kim Cuong Ly Kim Cuong Ly true false 2017-01-05 BAF This paper presents the difference in the likelihood of being targets or acquirers among stand-alone banks, single-bank holding company (SBHC) affiliates and multi-bank holding company (MBHC) affiliates. Using a sample of U.S. commercial bank data from 1997 to 2012, we find that MBHC affiliates exhibit a greater likelihood of being targets than do stand-alone commercial banks, while stand-alone banks have a greater probability of becoming targets than do SBHC affiliates. Our findings show that MBHC affiliates tend to have a greater likelihood of being acquirers than do SBHC affiliates, which again have a greater probability of being acquirers than do stand-alone banks. Those banks that acquire another bank within the same MBHC structure tend to be smaller and more financially constrained than those banks acquiring outside the same MBHC structure, whereas targets that are acquired by another bank within the same MBHC structure tend to be smaller, higher profitability and capital than targets that are acquired by banks from outside the MBHC structure. Our results suggest that the MBHC parent attempts to discipline distressed, poorly performing and smaller affiliates by involving them in mergers and acquisitions. Journal Article International Review of Financial Analysis 54 144 158 Elsevier BV 1057-5219 merger; acquisition; bank holding company affiliates; stand-alone commercial banks 1 11 2017 2017-11-01 10.1016/j.irfa.2016.11.003 COLLEGE NANME Accounting and Finance COLLEGE CODE BAF Swansea University 2020-07-31T15:10:42.8663172 2017-01-05T16:42:05.8122245 Faculty of Humanities and Social Sciences School of Management - Accounting and Finance Kim Cuong Ly 0000-0001-5856-4560 1 Hong Liu 2 Kwaku Opong 3 0031580-02022017171103.pdf IRFA2016_Kim_Cuong_Ly_RIS.pdf 2017-02-02T17:11:03.6130000 Output 2875470 application/pdf Accepted Manuscript true 2018-05-15T00:00:00.0000000 Released under the terms of a Creative Commons Attribution Non-Commercial No Derivatives License (CC-BY-NC-ND). true eng
title	Who acquires whom among stand-alone commercial banks and bank holding company affiliates?
spellingShingle	Who acquires whom among stand-alone commercial banks and bank holding company affiliates? Kim Cuong Ly
title_short	Who acquires whom among stand-alone commercial banks and bank holding company affiliates?
title_full	Who acquires whom among stand-alone commercial banks and bank holding company affiliates?
title_fullStr	Who acquires whom among stand-alone commercial banks and bank holding company affiliates?
title_full_unstemmed	Who acquires whom among stand-alone commercial banks and bank holding company affiliates?
title_sort	Who acquires whom among stand-alone commercial banks and bank holding company affiliates?
author_id_str_mv	06f8b2f66ecfb3ec21bd129e86e3e0ea
author_id_fullname_str_mv	06f8b2f66ecfb3ec21bd129e86e3e0ea_***_Kim Cuong Ly
author	Kim Cuong Ly
author2	Kim Cuong Ly Hong Liu Kwaku Opong
format	Journal article
container_title	International Review of Financial Analysis
container_volume	54
container_start_page	144
publishDate	2017
institution	Swansea University
issn	1057-5219
doi_str_mv	10.1016/j.irfa.2016.11.003
publisher	Elsevier BV
college_str	Faculty of Humanities and Social Sciences
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department_str	School of Management - Accounting and Finance{{{_:::_}}}Faculty of Humanities and Social Sciences{{{_:::_}}}School of Management - Accounting and Finance
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description	This paper presents the difference in the likelihood of being targets or acquirers among stand-alone banks, single-bank holding company (SBHC) affiliates and multi-bank holding company (MBHC) affiliates. Using a sample of U.S. commercial bank data from 1997 to 2012, we find that MBHC affiliates exhibit a greater likelihood of being targets than do stand-alone commercial banks, while stand-alone banks have a greater probability of becoming targets than do SBHC affiliates. Our findings show that MBHC affiliates tend to have a greater likelihood of being acquirers than do SBHC affiliates, which again have a greater probability of being acquirers than do stand-alone banks. Those banks that acquire another bank within the same MBHC structure tend to be smaller and more financially constrained than those banks acquiring outside the same MBHC structure, whereas targets that are acquired by another bank within the same MBHC structure tend to be smaller, higher profitability and capital than targets that are acquired by banks from outside the MBHC structure. Our results suggest that the MBHC parent attempts to discipline distressed, poorly performing and smaller affiliates by involving them in mergers and acquisitions.
published_date	2017-11-01T03:38:35Z
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Who acquires whom among stand-alone commercial banks and bank holding company affiliates?

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