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

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

No 4, Working Papers from College of Business, University of Texas at San Antonio

Abstract: Do relatively large mergers create more value? Do larger bid amounts represent wealth transfer or do they digmal larger expected merger gains? We hypothedize that the relationship between aggregate merger gains, dela size,and bid premiums is asymmetric across merfers 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 theh market values merger bids.

Keywords: Bank mergers; Managerial motivations; Merger gains (search for similar items in EconPapers)
JEL-codes: G14 G20 G21 G34 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2007-02-04
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Citations: View citations in EconPapers (13)

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