Determinants of Cross-Border M&As and Shareholder Wealth Effects in a Globalized World

We analyze theoretical insights and empirical regularities related to factors determining the cross-border mergers and acquisitions (M&As) and impact of M&As on shareholder value of acquires and targets. The analysis of cross-border M&As is a relatively new subject and only recently received rigorous attention in academic research. Within this nascent literature, the survey pays particular attention to the emerging markets, which, in line with their growing role of in the global economy, became an increasingly important arena for cross-border M&As. The existing evidence point out to prevailing challenges in studying cross-border M&As by emerging markets firms. The results are often contradictory and tend to focus on a single country falling short of formally testing existing theories or developing comprehensive theories for emerging economies. We show that the type of factors increasing the value enhancing effects of M&As tends to be similar to the factors affecting the likelihood of M&As transactions. The remaining methodological challenges for the existing studies are related to strong evidence with respect to nonrandom selection of acquisition targets, which, among other “selection issues,” has important implications for choosing counterfactual evidence in order to appropriately compare pre- and postacquisition performance of firms

The subsidy provided by the federal safety net: Theory and evidence

views expressed are those of the authors and do not necessarily reflect those of the Board of Governors or its staff. The authors wish to thank their many colleagues who commented on and contributed to this paper. We are especially grateful to Mark Carey, Jamie Ingpen, David Jones, Edward Ettin and Donald Savage for their support. Linda Pitts provided excellent secretarial support. All errors remain those of the authors. Considerable controversy surrounds the issue of whether the government’s commitment to prevent a systemic crisis in the banking system and to protect small depositors by maintaining a federal safety net for insured depository institutions also provides a subsidy to banks. This paper presents an intuitive and analytical model of how the safety net affects banks ’ cost of funds. Emphasis is placed on distinguishing between fixed and marginal costs in banking, and on the implications of the model for measuring the subsidy. Empirical results strongly suggest that the safety net has benefitted banks, and that over recent years bank holding companies have tended to move activities into a bank or a bank subsidiary. We conclude that limiting extension of the safety net subsidy should be a serious concern when designing strategies for expanding bank activities

Comparing Alternative Structures of Financial Alliances

In this paper, we study alliances between banks and insurance companies. Our perspective is that of the top management of a financial enterprise, and we constrain ourselves to the retail market. We define six different structure models for financial alliances. The parameters of the models are the closeness of the alliance in terms of mutual ownership, and the question of whether alliance partners have overlapping service channels. Examples are given of the models in the Finnish banking and insurance market. We also characterize nine criteria according to which the previously defined models are to be compared to achieve the most attractive alliance model. Thus, we obtain a multi-criteria decision-making (MCDM) problem. In the design of the criteria, representatives of the top management of Finnish banks and insurance companies have been consulted. The Geneva Papers (2005) 30, 327–342. doi:10.1057/palgrave.gpp.2510026

The effects of geographic expansion on the productivity of Spanish savings banks

Conditional density estimation, Geographic expansion, Malmquist productivity index, Nonparametric regression, Savings bank, C14, C30, C61, G21, L5,

A Comparison of Bancassurance and Traditional Insurer Sales Channels

[[abstract]]Although various sales channels exist for insurance products, no existing research compares their sales efficiency. This study offers a comparison of bancassurance and traditional sales channels in Taiwan. Using a data envelopment analysis approach, this study first computes the efficiencies of bancassurance and traditional sales channels separately. The efficiency score of the traditional sales channel is significantly higher than that of a comparable bancassurance channel. Furthermore, the efficiency relationship between the bancassurance and the traditional sales channels is independent. These findings have significant implications for the insurance industry and ongoing research in this field.[[notice]]補正完畢[[journaltype]]國外[[incitationindex]]SCI[[ispeerreviewed]]Y[[booktype]]紙本[[countrycodes]]GB