Cross-Market Effects of Consolidation: Evidence from Banking

IF 1.9 Q2 BUSINESS, FINANCE

Review of Corporate Finance Studies Pub Date : 2024-05-06 DOI:10.1093/rcfs/cfae012

Andrew Bird, Ding Du, Stephen A Karolyi

引用次数: 0

Abstract

The U.S. banking sector had nearly 70% fewer banks in 2022 relative to 1989, primarily because of mergers. We develop a methodology to estimate cross-market spillover effects of bank mergers and test whether the operations of incumbents facing consolidating competitors in one market are affected in other markets. We find that nonmerging banks within a market that are one standard deviation more exposed to mergers in other markets increase deposits by 2.1% relative to their less exposed competitors. Our methodology may be applied elsewhere to assess the aggregate impacts of industry consolidation and illustrates challenges with product-based or geographic market definitions. (JEL G21, G28, G34, L40)

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合并的跨市场效应：银行业的证据

与 1989 年相比，2022 年美国银行业的银行数量减少了近 70%，主要原因是合并。我们开发了一种方法来估算银行兼并的跨市场溢出效应，并检验了在一个市场上面临竞争对手合并的现有银行的经营是否会影响到其他市场。我们发现，在一个市场中，如果非合并银行受其他市场合并影响的程度高出一个标准差，那么相对于受影响程度较低的竞争对手，其存款会增加 2.1%。我们的方法可用于其他地方，以评估行业合并的总体影响，并说明基于产品或地域的市场定义所面临的挑战。(JEL G21, G28, G34, L40)

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Review of Corporate Finance Studies BUSINESS, FINANCE-

CiteScore

17.80

自引率

1.80%

发文量

期刊介绍： The Review of Corporate Finance Studies (RCFS) is dedicated to publishing high-quality research in the expansive field of Corporate Finance. The journal seeks original contributions, reviewing papers based on their unique insights into Corporate Finance. This encompasses a wide spectrum, including a firm's interactions with stakeholders, capital markets, internal organization structure, compensation mechanisms, corporate governance, and capital management. RCFS also welcomes research in financial intermediation, financial institutions, microstructure, and the implications of asset pricing for Corporate Finance. The journal considers theoretical, empirical, and experimental papers for review.