CORPORATE GOVERNANCE AND TARGET IPO BANK RETURNS SURROUNDING M&A ANNOUNCEMENTS

被引:0
作者
Chen, Su-Jane [1 ]
Dempere, Juan M. [1 ]
机构
[1] Metropolitan State Coll, Dept Finance, Denver, CO 80204 USA
来源
E-BUSINESS, MANAGEMENT AND ECONOMICS | 2011年 / 3卷
关键词
corporate governance; target IPO bank retuns; M&A announcements; SHAREHOLDER WEALTH; DIRECTORS; PERFORMANCE;
D O I
暂无
中图分类号
F [经济];
学科分类号
02 ;
摘要
This study examines the relationship between corporate governance and cumulative abnormal returns (CARs) associated with target IPO banks surrounding M&A announcements. Empirical evidence suggests that a majority of the sample banks benefit from M&A announcements. It further shows that the CARs can be positively attributed to D&O insurance coverage and ownership while being negatively linked to board size. However, board independence fails to register any significance. In contrast, bank size, the control variable, persistently shows its significant, negative relationship with respect to target bank stock performance around M&A announcements. Thus, stockholders of small target banks fare better than those of large target banks in mergers and acquisitions.
引用
收藏
页码:125 / 128
页数:4
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