Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/323716 
Year of Publication: 
2024
Citation: 
[Journal:] International Journal of Finance & Economics [ISSN:] 1099-1158 [Volume:] 30 [Issue:] 3 [Publisher:] John Wiley & Sons, Ltd. [Place:] Chichester, UK [Year:] 2024 [Pages:] 2215-2239
Publisher: 
John Wiley & Sons, Ltd., Chichester, UK
Abstract: 
We analyse the financial sector consolidation in Asia by using a comprehensive sample of bank M&As from 1995 to 2021. Our results show that M&A announcements by Asian domestic acquirers are associated with significant positive stock price returns to both acquirers and their rivals. In contrast, cross‐border acquirers and their rivals experience negative but insignificant returns, while targets and their rivals record gains, regardless whether it is a domestic or cross‐border transaction. Further analyses reveal that domestic acquirers obtaining larger relative increases in their market share benefit the most, indicating that market power considerations are the primary driver behind acquirers' positive returns. For cross‐border acquirers, neither cultural differences nor regulatory arbitrage considerations can explain return patterns surrounding M&A announcements.
Subjects: 
Banks
Emerging markets
Market consolidation
Market power
mergers and acquisitions (M&As)
Rival market reactions
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article
Document Version: 
Published Version

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