| Budget Amount *help |
¥5,200,000 (Direct Cost: ¥4,000,000、Indirect Cost: ¥1,200,000)
Fiscal Year 2013: ¥2,080,000 (Direct Cost: ¥1,600,000、Indirect Cost: ¥480,000)
Fiscal Year 2012: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2011: ¥2,210,000 (Direct Cost: ¥1,700,000、Indirect Cost: ¥510,000)
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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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