Deal size, bid prremium, and gains in bank mergers: The impact of managerial motivations

Atul Gupta and Lalatendu Misra
Additional contact information
Atul Gupta: Bentley College
Lalatendu Misra: University of Texas at San Antonio

No 18, Working Papers from College of Business, University of Texas at San Antonio

Abstract: Do relatively large members create more value? Do larger bid amounts represent wealth transfers or do they signal larger expected merger gains? We hypothesize that the relationship between aggregate merger gains, deal size, and bid premiums is asymmetric across mergers made by value-enhancing versus value-reducing managers. We use a large sample of bank mergers to test these predictions and find that the value response to different explanatory variables is asymmetric. Our findings provide new insights into how the market values merger bids.

Keywords: Bank mergers; Managerial motivations; merger gains (search for similar items in EconPapers)
JEL-codes: G14 G21 G34 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2007-02-04
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://interim.business.utsa.edu/wps/files/fin/0018FIN-092-2007.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tsa:wpaper:0049fin

Access Statistics for this paper

More papers in Working Papers from College of Business, University of Texas at San Antonio Contact information at EDIRC.
Bibliographic data for series maintained by Wendy Frost ().