TITLE:
Do Mergers and Acquisitions Increase Market Share and Financial Performance: Evidence from Two Deals in the US Banking Industry
AUTHORS:
Quang Nguyen Tran
KEYWORDS:
Mergers and Acquisitions, Financing, Market Share, Financial Performance, Abnormal Return
JOURNAL NAME:
Open Journal of Business and Management,
Vol.11 No.2,
March
22,
2023
ABSTRACT: How does the difference in financing influence the
M&As’ effects on businesses in the banking industry? Case study method is
applied to evaluate two deals, which are BB&T & SunTrust and KeyCorp
& First Niagara Financial Group (one all-equity financed and one cash &
equity financed). It is concluded that 1) the activity does increase market
share, financial performance, and shareholders’ abnormal return; 2) financing does affect the impacts of M&As, as deals paid by cash
& equity have a more remarkable improvement in financial performance and
shareholders’ return after M&A.