Bank mergers and components of risk: An evaluation Article

Mishra, S, Prakash, AJ, Karels, GV et al. (2005). Bank mergers and components of risk: An evaluation . Journal of Economics and Finance, 29(1), 85-96. 10.1007/BF02761544

cited authors

  • Mishra, S; Prakash, AJ; Karels, GV; Peterson, M

abstract

  • The present study empirically examines the contribution of the acquired banks in only the non-conglomerate types of mergers (i.e., banks with banks), where the bulk of the payment is in the form of equity to the acquiring bank and finds overwhelmingly statistically significant evidence that nonconglomerate types of mergers definitely reduce the total as well as the unsystematic risk while having no statistically significant effect on systematic risk. Therefore, it seems that diversification may be a possible motive for bank mergers.

authors

publication date

  • January 1, 2005

published in

Digital Object Identifier (DOI)

start page

  • 85

end page

  • 96

volume

  • 29

issue

  • 1