Determinants of bank merger premiums

1996 ◽  
Vol 20 (1) ◽  
pp. 117-131 ◽  
Author(s):  
Hany A. Shawky ◽  
Tobias Kilb ◽  
Carsten F. W. Staas
Keyword(s):  
Bank Merger ◽  
Merger Premiums

The Impact of State Deposit Caps on Bank Merger Premiums

1997 ◽  
Vol 63 (3) ◽  
pp. 652 ◽  
Author(s):  
David R. Hakes ◽  
Kenneth H. Brown ◽  
Allen Rappaport
Keyword(s):  
Bank Merger ◽  
Merger Premiums ◽  
The Impact

Merger Premium Predictions Using a Neural Network Approach

2005 ◽  
Vol 2 (1) ◽  
pp. 61-72 ◽  
Author(s):  
Tara J. Shawver
Keyword(s):  
Neural Network ◽  
Network Models ◽  
Network Approach ◽  
Neural Network Models ◽  
Neural Network Approach ◽  
Bank Merger ◽  
Financial Variables ◽  
Neural Network Prediction ◽  
Network Prediction ◽  
Merger Premiums

Over 80 percent of mergers fail to achieve projected financial, strategic, and operational synergies (Marks and Mirvis 2001). It is critical for management to find accurate models to price merger premiums. Management has an interest to protect stakeholders by acquiring companies that can add value to their investments at the most favorable price. Published studies in the area of pricing mergers have not attempted to use expert systems in the decision-making process. This paper is the first of its kind that describes the development and testing of neural network models for predicting bank merger premiums accurately. A neural network prediction model provides a tool that can filter through noise and recognize patterns in complicated financial relationships. The results confirm that a neural network approach provides more explanation between the dependent and independent financial variables in the model than a traditional regression model. The higher level of accuracy provided by a neural network approach can provide practitioners with a competitive advantage in pricing merger offers.

Are Bank Merger Characteristics Important for Local Community Investment?

2020 ◽  
Author(s):  
Bernadette A. Minton ◽  
Alvaro G. Taboada ◽  
Rohan G. Williamson
Keyword(s):  
Local Community ◽  
Bank Merger ◽  
Community Investment

scholarly journals Effects of Regional Bank Merger on Small Business Borrowing: Evidence from Japan

2015 ◽  
Vol 7 (11) ◽  
pp. 62
Author(s):  
Hironobu Miyazaki ◽  
Hiroyuki Aman
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Economies Of Scale ◽  
Loan Portfolio ◽  
Small Business Lending ◽  
Borrowing Costs ◽  
Bank Merger ◽  
Regional Bank ◽  
Small Business Loans ◽  
The Impact

This study examines the impact of a regional bank merger in Japan on borrowing by small businesses, focusing on firms that borrow from the acquiring bank, the acquired bank, or both. First, we find that post-merger borrowing costs declined. This result suggests that small borrowers enjoy more favorable post-merger financing conditions because efficiencies from economies of scale lead to lower costs. Second, we<strong> </strong>find that post-merger borrowing costs decline for firms that borrow only from the acquiring or acquired bank, whereas they did not decline for firms that borrow from both. Third, we find that only small business loans to firms that borrow from both the acquiring and acquired banks decrease post-merger. This result suggests that small business lending might decline because of a merged bank’s loan portfolio and lending strategy.

How Much is Too Much: Are Merger Premiums Too High?

2006 ◽  
Author(s):  
Antonios Antoniou ◽  
Philippe Arbour ◽  
Huainan Zhao
Keyword(s):  
Merger Premiums

Tax Benefits as a Source of Merger Premiums In Acquisitions of Private Corporations

2007 ◽  
Vol 82 (2) ◽  
pp. 359-387 ◽  
Author(s):  
Merle M. Erickson ◽  
Shiing-wu Wang
Keyword(s):  
Organizational Form ◽  
Price Premium ◽  
Tax Structure ◽  
Purchase Price ◽  
Merger Premiums ◽  
Tax Benefits ◽  
Private Corporations ◽  
Acquisition Price ◽  
Privately Held

Scholes et al. (2005) predict that S corporations, and other conduit entities such as partnerships and LLCs, can sell for a tax-driven purchase price premium relative to C corporations. We test this conjecture by comparing purchase price multiples in a sample of taxable stock acquisitions of S corporations to purchase price multiples for a matched set of taxable stock acquisitions of privately held C corporations. Consistent with Scholes et al.'s (2005) predictions, we find evidence that the organizational form of the target influences acquisition tax structure and acquisition price. Specifically, the evidence supports the conclusion that conduit entities (S corporations) fetch a taxbased purchase price premium relative to similar C corporations. Furthermore, our estimates indicate that average tax benefits in S corporation acquisitions are equal to approximately 12–17 percent of deal value.

The Bank Merger Paradox

Bank Mergers ◽  
2000 ◽  
pp. 1-9 ◽  
Author(s):  
Steven I. Davis
Keyword(s):  
Bank Merger
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