2013 Fiscal Year Final Research Report
Bank-Firm Relationships in the post-crisis economy
| Project/Area Number |
23530334
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Multi-year Fund |
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| Section | 一般 |
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| Research Field |
Economic policy
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| Research Institution | International Christian University |
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Principal Investigator |
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| Project Period (FY) |
2011 – 2013
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| Keywords | 金融機関 / 経済政策 / 合併 / イベントスタディー法 |
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| Research Abstract |
Banks entering into a mega-bank enjoy large and highly statistically significant excess returns. However, the size of the merger does not seem to affect longer-term measures of performance. Using synthetic control method, we are able to conduct difference-in-difference analysis and find that acquiring banks become statistically significantly less profitable, less solvent, and more inefficient after a merger event than the control group. These findings suggest that the benefits accruing to shareholders of mega-merger banks are not due to newly created business synergies, but perhaps a "flight-to-safety" on the part of shareholders.
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