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The Effect of Bank Mergers on Client Firms

Research Project

Project/Area Number 26380398
Research Category

Grant-in-Aid for Scientific Research (C)

Allocation TypeMulti-year Fund
Section一般
Research Field Money/ Finance
Research InstitutionInternational Christian University

Principal Investigator

Montgomery Heather  国際基督教大学, 教養学部, 上級准教授 (60468551)

Project Period (FY) 2014-04-01 – 2018-03-31
Project Status Completed (Fiscal Year 2017)
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)
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
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.

Report

(5 results)
  • 2017 Annual Research Report   Final Research Report ( PDF )
  • 2016 Research-status Report
  • 2015 Research-status Report
  • 2014 Research-status Report

Research Products

(19 results)

All 2018 2017 2016 2015 2014

All Journal Article (5 results) (of which Int'l Joint Research: 1 results,  Peer Reviewed: 5 results) Presentation (14 results) (of which Int'l Joint Research: 2 results,  Invited: 7 results)

  • [Journal Article] The Effect of Bank Mergers on Client Firms: Evidence from the Credit Supply Channel2018

    • Author(s)
      H. Montgomery & Yuki Takahashi
    • Journal Title

      The Japanese Economic Review

      Volume: 印刷中

    • Related Report
      2017 Annual Research Report
    • Peer Reviewed / Int'l Joint Research
  • [Journal Article] "La Dolche Vita in Japan: The Effect of Bank Mergers on Corporate Governance"2016

    • Author(s)
      MONTGOMERY, H. and Y. Takahashi
    • Journal Title

      International Journal of Financial Research

      Volume: Vol. 7, No. 1 Pages: 57-65

    • Related Report
      2015 Research-status Report
    • Peer Reviewed
  • [Journal Article] The Effect of Bank Mergers on Shareholder Value and Performance in Japan2014

    • Author(s)
      MONTGOMERY, H. and Y. Takahashi
    • Journal Title

      Handbook of Asian Finance, Edited by G. N. Gregoriou and D. Lee (Elsevier)

      Volume: 5 Pages: 77-103

    • Related Report
      2014 Research-status Report
    • Peer Reviewed
  • [Journal Article] Too Big to Succeed? Banking Sector Consolidation and Efficiency2014

    • Author(s)
      MONTGOMERY, H., K. Harimaya and Y. Takahashi
    • Journal Title

      Journal of International Financial Markets, Institutions & Money

      Volume: 32 Pages: 86-106

    • Related Report
      2014 Research-status Report
    • Peer Reviewed
  • [Journal Article] The Economic Consequences of the TARP: The effectiveness of bank recapitalization policies in the US2014

    • Author(s)
      MONTGOMERY, H. and Y. Takahashi
    • Journal Title

      Japan and the World Economy

      Volume: 32 Pages: 49-64

    • Related Report
      2014 Research-status Report
    • Peer Reviewed
  • [Presentation] Discussion of "Biased Monitors: Corporate Governance When Managerial Ability is Mis-assessed" by Benjamin Hermalin.2017

    • Author(s)
      H. Montgomery
    • Organizer
      27th NBER-TCER-CEPR Conference on Corporate Governance
    • Related Report
      2017 Annual Research Report
    • Int'l Joint Research / Invited
  • [Presentation] Discussion of "Funding liquidity risk and internal market in the multi-bank holding companies: Diversification or internalization?" by Katsutoshi Shimizu and Kim Cuong Ly.2017

    • Author(s)
      H. Montgomery
    • Organizer
      The Nippon Finance Association 25th Annual Meeting (日本ファイナンス学会第25回大会)
    • Related Report
      2017 Annual Research Report
  • [Presentation] Discussion of "Share Pledges and Margin Call Pressure".2016

    • Author(s)
      Heather Montgomery
    • Organizer
      26th NBER-TCER-CEPR Conference on Corporate Governance
    • Place of Presentation
      Otemachi Financial City
    • Year and Date
      2016-12-08
    • Related Report
      2016 Research-status Report
    • Int'l Joint Research / Invited
  • [Presentation] Discussion of "Institutional Analysis on the European Banking Union: Relations with the European Banking Authority and Financial Stability Board"2016

    • Author(s)
      Heather Montgomery
    • Organizer
      Japan Society of Monetary Economics (JSME) Autumn Meetings
    • Place of Presentation
      Kansai University
    • Year and Date
      2016-10-15
    • Related Report
      2016 Research-status Report
    • Invited
  • [Presentation] Discussion of "The Dissolution of Inappropriate Relationships: Why do Banks and Borrowers Divorce?"2015

    • Author(s)
      MONTGOMERY, H.
    • Organizer
      日本金融学会2015年度秋季学会
    • Place of Presentation
      東北大学 (宮城県仙台市)
    • Year and Date
      2015-10-23
    • Related Report
      2015 Research-status Report
    • Invited
  • [Presentation] Are bank mergers good news for shareholders?2015

    • Author(s)
      MONTGOMERY, H. and Y. Takahashi
    • Organizer
      日本経済学会2015年度春季大会
    • Place of Presentation
      新潟大学(新潟県新潟市)
    • Year and Date
      2015-05-23
    • Related Report
      2015 Research-status Report
  • [Presentation] Are bank mergers good news for shareholders? The effect of bank mergers on client firm value2015

    • Author(s)
      MONTGOMERY, H.
    • Organizer
      日本金融学会2015年度春季大会
    • Place of Presentation
      東京経済大学(東京都国分寺市)
    • Year and Date
      2015-05-16
    • Related Report
      2015 Research-status Report
  • [Presentation] The effect of bank mergers on client firms2015

    • Author(s)
      MONTGOMERY, H.
    • Organizer
      Allied Social Science Association (ASSA) Annual Meetings
    • Place of Presentation
      Boston, MA, USA
    • Year and Date
      2015-01-03 – 2015-01-05
    • Related Report
      2014 Research-status Report
  • [Presentation] Are bank mergers good news for shareholders? The Effect of Bank Mergers on Client Firm Value and Bank-Firm Relati2014

    • Author(s)
      MONTGOMERY, H.
    • Organizer
      一橋大学商学研究科金融研究会
    • Place of Presentation
      Kunitachi, Tokyo, Japan.
    • Year and Date
      2014-10-16
    • Related Report
      2014 Research-status Report
    • Invited
  • [Presentation] Are bank mergers good news for shareholders? The Effect of Bank Mergers on Client Firm Value and Bank-Firm Relationships2014

    • Author(s)
      MONTGOMERY, H.
    • Organizer
      Workshop in Macroeconomic Research at Liberal Arts Colleges
    • Place of Presentation
      Wesleyan University, Middletown, CT, USA
    • Year and Date
      2014-08-05 – 2014-08-06
    • Related Report
      2014 Research-status Report
  • [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
      2014 Research-status Report
    • Invited
  • [Presentation] Are bank mergers good news for shareholders?2014

    • Author(s)
      MONTGOMERY, H.
    • Organizer
      統計研究会の金融班
    • Place of Presentation
      Otemachi Financial City, Tokyo, Japan.
    • Year and Date
      2014-06-27
    • Related Report
      2014 Research-status Report
    • Invited
  • [Presentation] The Effect of Bank Mergers on Client Firm Value and Bank-Firm Relationships2014

    • Author(s)
      MONTGOMERY, H.
    • Organizer
      日本経済学会春季大会
    • Place of Presentation
      Doshisha University, Kyoto, Japan.
    • Year and Date
      2014-06-14 – 2014-06-15
    • Related Report
      2014 Research-status Report
  • [Presentation] The Effect of Bank Mergers on Client Firm Value and Bank-Firm Relationships2014

    • Author(s)
      MONTGOMERY, H.
    • Organizer
      日本ファイナンス学会第22回大会
    • Place of Presentation
      Chuo University, Tokyo, Japan.
    • Year and Date
      2014-05-31 – 2014-06-01
    • Related Report
      2014 Research-status Report

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Published: 2014-04-04   Modified: 2019-03-29  

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