The Effect of Bank Mergers on Client Firms
| Project/Area Number |
26380398
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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 |
Money/ Finance
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| Research Institution | International Christian University |
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Principal Investigator |
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| Project Period (FY) |
2014-04-01 – 2018-03-31
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| Project Status |
Completed (Fiscal Year 2017)
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| Budget Amount *help |
¥4,680,000 (Direct Cost: ¥3,600,000、Indirect Cost: ¥1,080,000)
Fiscal Year 2016: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2015: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2014: ¥2,860,000 (Direct Cost: ¥2,200,000、Indirect Cost: ¥660,000)
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| Keywords | 銀行 / 合併 / 金融機関 / 貸出 / ローン / distance to default / bank / mergers and acquisitions / financial institutions / イベントスタディー法 / 銀行と企業の関係 |
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| Outline of Final Research Achievements |
The focus of this study is the effect of bank merger announcements on the client firms of those banks. In general, client firms of banks that announce a merger experience a significant reduction in the supply of credit from the merged main bank. Firms are unable to hedge against this fall in credit availability from the main bank and experience a significant reduction in total firm borrowing. However, the effect of bank merger announcements on client firms exhibits substantial heterogeneity. Zombie firms find it especially difficult to hedge against the fall in credit supplied by the main bank following a bank merger announcement. Thus, the zombie firms experience a precipitous drop in total firm borrowing following the announcement of a merger by their main bank. In addition, zombie firms experience significantly shorter distance-to-default and lower firm investment following a merger announcement by their main bank.
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Report
(5 results)
Research Products
(19 results)
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[Presentation] Are bank mergers good news for shareholders?2014
Author(s)
MONTGOMERY, H.
Organizer
International Corporate Strategy Workshop, Graduate School of International Corporate Strategy (ICS), Hitotsubashi University
Place of Presentation
Hitotsubashi University, Tokyo, Japan.
Year and Date
2014-06-30
Related Report
Invited
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