- 期刊
Comparison of Systematic Risk between Cross-border Bank M & As and Domestic One: International Evidence
並列摘要
This article examines the effects of cross-border and domestic bank M&As on the systematic risk of acquiring banks, to evidence the potential diversification gains that stem from geographic or cross-border diversification. Overall, after the announcement of M&As, most of the acquirers' systematic risk falls relative to banks in their home financial market for cross-border M&As. The finding has important regulatory policy implications in that; there is a decrease in systematic risk with respect to the bank return and market return indexes of the home country, where the acquirer is located. Thus, regulators in home countries may be less concerned about imposing barriers to cross-border M&As. In addition, neither is there an increase significantly in systematic risk with respect to the bank index of the host country, where the target is located. Thus regulators in host countries may be less concerned about imposing barriers to foreign acquisitions. Consequently, we suggest that there is no need for regulators to be concerned with a rise in systematic risk following cross-border M&As and no need to restrict the cross-border M&As activity.