Title: Cross-border bank acquisitions
First published: 2008
Description: "This paper uses a unique database that includes deal and bank balance sheet information for 220 cross-border acquisitions between 1994 and 2003 to analyze the characteristics and performance effects of international takeovers on target banks.  A discrete choice estimation shows that banks are more likely to get acquired in a cross-border deal if they are large, bad performers, in a small country, and when the banking sector is concentrated.  Post-acquisition performance for target banks does not improve in the first two years relative to domestically-owned financial institutions.  This result is explained by a decrease in the banks' net interest margin in developed countries and an increase in overhead costs in emerging economies"--Federal Reserve Board web site.
LC classification: HG3879