MARKET POWER, BANK MEGAMERGERS, AND THE WELFARE OF BANK BORROWERS Academic Article

abstract

• We assess the effects on the welfare of corporate borrowers of the recent wave of bank consolidations in the United States that has produced a small number of very large banks. Our evidence from a sample of more than 3,000 commercial borrowers from banks involved in large mergers indicates that the wealth effects on these borrowers are highly negative, statistically significant, and economically important. These negative investor perceptions seem to be driven largely by the expectation of changes in banks' market power resulting from the mergers. 2011 The Southern Finance Association and the Southwestern Finance Association.

authors

• Kolari, James

published proceedings

• The Journal of Financial Research

author list (cited authors)

• Fraser, D. R., Kolari, J. W., Pynnnen, S., & Tippens, T. K.

citation count

• 13

complete list of authors

• Fraser, Donald R||Kolari, James W||Pynnönen, Seppo||Tippens, T Kyle

publication date

• December 2011

publisher

• Wiley  Publisher

published in

• Journal of Financial Research  Journal

keywords

• Bank Megamergers
• Bank Mergers
• Market Power

Digital Object Identifier (DOI)

• 10.1111/j.1475-6803.2011.01305.x

start page

• 641

end page

• 658

volume

• 34

issue

• 4

URL

• http%3A%2F%2Fdx.doi.org%2F10.1111%2Fj.1475-6803.2011.01305.x