The Long-Run Performance of Asian Commercial Bank Mergers and Acquisition


In this paper, we investigate the long-run post-merger performance of Asian acquiring bank by using 293 deals in the 1997-2007 periods. We find the Asian acquiring banks experience negative long-term abnormal returns and are not efficiency improving, followed by mergers and acquisition. However, DeYoung, Evanoff and Molyneux [1] find European bank mergers appear to have resulted in both efficiency gains and stockholder value enhancement and North American bank mergers are efficiency improving, although the event-study literature presents a mixed picture regarding stockholder wealth creation. Therefore, our empirical results show that the long-run stock returns and operating performance of Asian commercial bank mergers are different from those of the US and EU markets. In general, the long-run stock performance and operating performance of Asian commercial bank merger and Acquisition are negative and Asian commercial bank merger and Acquisition cannot create synergy in the long run.

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Wang, S. , Shih, Y. and Lin, P. (2014) The Long-Run Performance of Asian Commercial Bank Mergers and Acquisition. Modern Economy, 5, 341-359. doi: 10.4236/me.2014.54034.

Conflicts of Interest

The authors declare no conflicts of interest.


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