The impacts of Gramm–Leach–Bliley bank diversification on value and risk

Recent trends in the study of merges and acquisitions

“…This theory is found not only in the banking sector, but also in insurance and others [11]. [11] study this effect on the US market for the 2001-2011 period and show that there is not clear evidence of it, but that the characteristics of the acquirer are, however, important. These characteristics are associated with different risks that can appear in the M&A process and after it.…”

Bank Income Diversification, Asset Correlation and Systemic Risk

“…© 2019 Economic Society of South Africa With respect to empirical analysis, one branch in the literature focusses on the influence of banks' diversification to their idiosyncratic and systematic risks, rather than the whole banking systemic risk (e.g. Baele et al, 2007;Filson and Olfati, 2014;Bessler et al, 2015). Another strand aims at the effect of income diversification or non-interest income (NONI) on financial stability, but there is not much consideration on asset correlation (e.g.…”

“…As to Hypothesis 1, even though some studies (e.g. Baele et al, 2007;Filson and Olfati, 2014;Bessler et al, 2015) have empirically investigated the effect of banks' income diversification on their idiosyncratic and systematic risk exposures, there are relatively few studies that address the impact of banks' income diversification on the entire market risk. In our research, the measure for systemic risk in the banking sector is the weighted average Z-score indices 4 (as suggested in Houston et al, 2010) of the banks in our sample data, rather than the Z-score data offered by the World Bank, which contain several banks that are not in estimated sample.…”

Are Bank Mergers Good News for Shareholders? The Effect of Bank Mergers on Shareholder Value in Japan

“…Previous studies on the impact of bank mergers on the banks themselves have generally found that bank mergers bring positive excess returns to shareholders of the target bank (Cybo-Ottone and Murgia 2000;DeLong 2001;Houston et al 2001;Campa and Hernando 2006;DeLong and DeYoung 2007). The shareholders of the acquiring banks also benefit during periods of financial crisis (Beltratti and Paladino 2013), in the case of mega-mergers (Kane 2000), diversifying mergers (Filson and Olfati 2014), or when the target is in a low investor protection environment (Hagendorff et al 2008).…”