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Due to the government-driven mergers of large banks, many competing firms in Japan ended up borrowing from a common lender. Using firm-level data, we find that the capital investments of competing firms that share a common lender decrease by 15% of the mean. When a common lender can exercise its voice through its former employees serving as firms' executive directors, investments fall significantly further. Competing firms that share a common lender increase markups and profitability ratios, suggesting that the lender induces strategic coordination among its borrowers to reduce their competitive pressures. Firms use saved resources from weaker competition for cash cushions. [ABSTRACT FROM AUTHOR]

Consolidation in the U.S. banking industry has led to larger banks. I find that low-income households face reduced access to credit when local banks are large. This result appears to stem from large banks' comparative disadvantage using soft information, which is particularly important for lending to low-income households. In contrast, the size of local banks has little or no effect on high-income households. Consistent with low-income parents' credit constraints limiting investment in their children's human capital, areas with larger banks exhibit a greater sensitivity of educational attainment to parental income, and less intergenerational economic mobility. [ABSTRACT FROM AUTHOR]

Copyright of International Journal of Professional Business Review (JPBReview) is the property of Open Access Publications LLC and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We study the comparative advantage of firms with focused and multidivisional organizational forms at attracting valuable human capital. Using the merger and acquisition (M&A) advisory industry as a laboratory, we show that high-performing individuals are more likely to migrate to boutique (focused) banks, especially those who are still on the upward trajectory of their career. Such migration is amplified by the cross-subsidization inside bulge bracket (multidivisional) firms, proxied by poor performance of their non-M&A departments. The transition of skilled labor improves the performance of the boutique sector, potentially contributing to the rise of boutiques over the past two decades. Moreover, M&A deal outcomes differ when having boutique advisors. Our findings suggest that corporate organizational structure and labor migration can jointly shape industry dynamics. This paper was accepted by Victoria Ivashina, finance. Funding: W. Wang gratefully acknowledges financial support from the Daniel C. Smith Fellowship. Supplemental Material: Data and the internet appendix are available at https://doi.org/10.1287/mnsc.2021.03829. [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]

We investigate the puzzle of banks contracting the services of external advisors for deals they can self-manage and the role of financial advisors in mergers and acquisitions among European banking firms. We also study the determinants of the choice by bank acquirers and bank targets to either appoint external advisors or manage in-house, as well as between appointing either top or lower tier advisors. Top tier advisors are more likely to be employed in debt financed and cross-border deals. We also find that most European bank mergers are managed in-house, contrary to prior findings reporting mostly externally managed deals attributed to the certification effect. Targets fail to benefit from deals where they do not match acquirer's decision to appoint external advisors. However, there is an overall propensity to match the counter party's tier of advisor. [ABSTRACT FROM AUTHOR]

This paper aims to examine the effects of bank mergers and corporate governance to maqashid sharia performance. This study also aims to examine the effect of corporate governance as a moderating variable. In this study, the measurement of variables using Integrated Maqashid Sharia Performance Measurement (IMSPM) which includes dimensions consisting of faith (din), self (nafs), intellect ('aql), posterity (nasl), and wealth (mal). Data processing was carried out using SPSS Statistics 29 with the source data of bank financial statements before and after the merger. The data includes the financial statements of BNI Syariah, BRI Syariah, Bank Mandiri Syariah 2015 - 2020 and also Bank BSI 2021 - 2023. The results showed that bank mergers have a positive effect on maqashid sharia performance. However, the corporate governance variable consisting of the independence and remuneration of the Sharia Supervisory Board (SSB) shows that the independence of SSB has no effect on the maqashid sharia performance and remuneration SSB has a negative effect. Independence of SSB has no effect to maqashid sharia performance because SSB who are not independent or hold concurrent positions will have more experience due to their role in other Islamic institutions and banks. In addition, SSB remuneration has a negative effect because when viewed from the operational side, the high remuneration received by SSB will actually increase the burden on banks so that it has an impact on their maqashid sharia performance. Nevertheless, corporate governance variables both independence and remuneration of SSB can strengthen the effect of mergers on maqashid sharia performance. [ABSTRACT FROM AUTHOR]

This research delves into the intricate effects of mergers and acquisitions (M&A) on stock prices within the Saudi Arabian banking sector, employing the event study methodology (ESM) to examine both short-term and long-term impacts on stock valuations. The study meticulously calculates expected and abnormal returns (ARs) around merger events, shedding light on the significant influence these corporate actions exert on market perceptions and investor behavior. The methodology encompasses an analysis of daily stock price data before and after merger events, providing a detailed view of market reactions. Key findings reveal an immediate positive market response to merger announcements, driven by the anticipation of synergistic benefits, alongside diverse long-term stock price effects that underscore the complex relationship between initial expectations and actual merger outcomes. The research concludes that strategic merger planning and effective communication with stakeholders are crucial for realizing the anticipated benefits of mergers. By offering new insights into the sector-specific and regional dynamics that affect M&A outcomes, this study enhances understanding of the significant implications for investors, financial institutions, and policymakers engaged with the Middle Eastern financial markets. [ABSTRACT FROM AUTHOR]

This paper analyzes the advantages and the drawbacks of using the Synthetic Aperture Radar (SAR) azimuth multichannel technique known as Multi-Aperture Processing Scheme (MAPS), in a set of relevant application cases that are far from the canonical ones. In the scientific literature on this topic, equally distributed azimuth channels with the quasi-monostatic deployment are assumed. With this research, we aim at extending the models from the current literature to (i) a generic bistatic acquisition geometry, (ii) a set of cases where the number of receiving tiles is not the same for each channel, or (iii) the tiles are shared between adjacent channels thus creating an overlapping configuration. The paper introduces the mathematical models for the listed non-conventional MAPS cases. Dealing with the bistatic MAPS, we first solve the problem by interpreting multichannel acquisition as a bank of Linear Time Invariant (LTI) filters. Then, a more physical approach, based on discrimination of the direction of arrivals (DoAs) is pursued. The effectiveness of the two methods and the advantages of the second approach on the first are proved by using a simplified 1D end-to-end simulation. Even limiting to the monostatic configuration, the azimuth antenna tiles have always been supposed equally partitioned among the RX channels. Overcoming this limit has two advantages: (i) more MAPS possible solutions in case few azimuth tiles are available, as in the ROSE-L mission; (ii) the number of channels can be designed independently of the number of tiles, also allowing asymmetric solutions, useful for a phase array antenna with an odd number of tiles such as in the SAOCOM-1 mission. Conversely, sharing one or more receiving tiles in different receiving channels makes the input noise partially correlated. The drawback is an increase in the noise level. A trade-off is determined for the different solutions obtained using simulations with real mission parameters. The theoretical performance and the end-to-end simulations are compared. [ABSTRACT FROM AUTHOR]

Competitive banks aggressively invest in information and communication technologies (ICT) to enhance their market share and reduce Customer Acquisition Costs (CAC). This study examines the impact of cumulative stock of ICT investment on (a) deposit and loan market share and (b) CAC of banks operating in India. The analysis uses a longitudinal dataset of 84 domestic and 70 foreign banks from 2000 to 2020, employing a two-step system Generalized Method of Moment (GMM). It is found that ICT investment adversely affects the market share of domestic banks, indicating a need for these banks to strategically invest more in CAC. Conversely, foreign banks are able to increase their market share through ICT investment and reduced CAC, thereby demonstrating greater efficiency in utilizing ICT. The study underscores the strategic importance of cumulative stock of ICT investment for banks. Nonetheless, it is emphasized that ICT investment must be complemented with innovative marketing strategies to enhance customer experience, reduce CAC, and increase market share. Overall, while foreign banks are able to leverage ICT to boost efficiency, domestic banks must leverage ICT to implement targeted marketing strategies and strive to enhance their customer service. [ABSTRACT FROM AUTHOR]

The sole ownership policy in Indonesian banking is regulated in Bank Indonesia Regulation Number 14/24/PBI/2012 concerning Sole Ownership in Indonesian banking which is then supplemented by Bank Indonesia Circular Letter Number 15/2/DPNP dated 4 February 2013 concerning Sole Ownership in Indonesian Banking. This research was created to find out about the regulations and implementation of sole ownership policies in banking in Indonesia. The research uses normative juridical research methods. The research results state that the implementation of the sole ownership policy in banking in Indonesia is carried out through the merger or consolidation of controlled banks, forming a Holding Company in the Banking Sector (Bank Holding Company/BHC), forming a Holding Function. There is a need for further study regarding the implementation of the sole ownership policy in banking in Indonesia. [ABSTRACT FROM AUTHOR]

Copyright of Jurnal Manajemen Pendidikan dan Ilmu Sosial (JMPIS) is the property of Dinasti Publisher and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Financial intermediation is a vital component in supporting the country's economic growth. The Indian banking sector has been constantly evolving and a major impetus came from the nationalisation of commercial banks with social objectives, subsequently, it has been witnessing a wide range of policy-induced reforms and structural changes since the early 1990s. The new steps taken by RBI toward consolidation of the public sector banks (PSB) are among the most distinguished events in the financial landscape of the country in recent years which would result in a major transformation, in line with the Narasimham Committee report (1991) to create a few but strong banks that can compete at the national as well as at the international level. The recent spate of consolidation of PSBs started with the merger of a few associate banks of State Bank of India (SBI) and another PSB with SBI in April 2017. Exactly after two years, i.e., in April 2019, two more PSBs were amalgamated with Bank of Baroda (BoB). The purpose was to form strong and competitive banks through consolidation among PSBs as announced by the Government of India in 2019. In April 2020, the Government of India (GoI) consolidated ten PSBs into four and termed it as mega consolidation. Punjab National Bank (PNB) and Union Bank of India (UBI) amalgamated two PSBs each while Canara Bank and Indian Bank merged one PSB each into them. Consequently, the number of PSBs went down from 27 in March 2017 to 12 in April 2020. It is, thus, observed that consolidation of PSBs, although recommended in 1991, was implemented since 2016. The mega consolidation was expected to enhance the competitiveness of the PSBs and stimulate the banking activity in the country. The paper compares the before and after merger position of long term profitability with respect to Union Bank of India for a period of 6 years ranging from Financial Year 2017 to Financial Year 2022. The financial performance is evaluated on the basis of various variables used under CAMEL Model. The researcher would like to acknowledge the financial grant given by ICSSR to conduct this important paper / project and would also like to thanks all the officials of ICSSR for their valuable guidance and help. [ABSTRACT FROM AUTHOR]

Purpose: The study seeks to evaluate the effect of capital adequacy and competition on the liquidity creation of Kenyan commercial banks. Design/methodology/approach: Unbalanced panel data from 36 Kenyan commercial banks with licenses from 2001 to 2020 is used in the study. The generalized method of moments (GMM), a two-step system, is employed in the investigation. To increase the robustness and prevent erroneous findings, serial correlation tests and instrumental validity analyses are used. The methodology developed by Berger and Bouwman (2009) is used to estimate the commercial banks' levels of liquidity creation. Findings: The study supports the financial fragility-crowding out hypothesis by finding a significant negative effect of capital adequacy on the liquidity creation of commercial banks. The research also identifies a significant inverse relationship between competition and liquidity creation, depicting competition's value-destroying effect. Practical implications: A trade-off exists between capital adequacy and liquidity creation, which must be carefully evaluated as changes in capital requirements are considered. The value-destroying effect of competition on liquidity creation presents a case for policy geared toward consolidating banks' operations through possible mergers and acquisitions. Originality/value: To the best of the authors' knowledge, this is the first study to empirically offer evidence concurrently on the effect of competition and capital adequacy on the liquidity creation of commercial banks in a developing economy such as Kenya. Additionally, the authors employ a novel measure of competition at the firm level. [ABSTRACT FROM AUTHOR]

Beyond the 2007–2008 financial crisis, the collapse of the Silicon Valley Bank and the acquisition of Credit Suisse by the Swiss investment bank UBS Group AG in 2023 have brought fresh attention to the need for new regulatory capital, liquidity risk management, and leverage requirements. To meet tightened capital requirements, banks have to increase their capital ratios either by increasing equity or by decreasing risk-weighted assets. Both options lead to banks' performance deterioration. One remedy for banks to recover is raising their lending spread. A critical question is how much the lending spread should be increased to offset the drop in the bank's financial performance level. In this study, we focus on the asymmetries and efficiency consequences of performance indices such as economic value added (EVA) and the more commonly used return on equity (ROE) in determining the loan spread. Using data on the largest U.S. banks over the period 2018–2022, our results show that the ROE rule significantly overestimates the magnitude of the lending spreads required to offset the negative financial consequences of increases in capital ratios. The EVA approach, on the other hand, prescribes on average a significantly lower lending spread of 0.4505 basis points against a lending spread of 21.0441 basis points associated with the use of the ROE approach. The efficiency and the level of lending spreads should enable banks to maintain their competitive advantages in the loan markets impacting overall economic productivity and growth. [ABSTRACT FROM AUTHOR]

The purpose of this research is to investigate the future of the country’s banking management system due to the merger of banks. The research strategy in the qualitative part of the research is a library study and in the quantitative part of the research, it is a survey type. The current research in terms of practical purpose and in terms of how to collect information; it is a field. The statistical population consists of all the university and banking experts of West and East Azerbaijan province, whose number is equal to 440 people, and using Cochran’s formula, the sample size is equal to 205 people. The random sampling method is simple and in order to collect information from library resources, as well as in order to collect data and information for analysis, a questionnaire made by the researcher was used, and all analyzes were done using software SPSS software was used, which according to the results of prioritizing the opinions of the sample about the merger of banks in the future, in the banking management system of West and East Azarbaijan province, showed that the items ”culture management, stress management, human resource reconstruction, resistance to change, insecurity ”Jobs, draining talents, lack of motivation are among the challenges in merging banks in the future.” With the average (3.52) and coefficient of variation (cv=0.288), the item ”successful transfer of management depends on changing the management structure in accordance with the functional requirements after the merger and creating the necessary infrastructure based on solving the previous problems.” With the mean (3.35) and coefficient of variation (cv=0.300), the item ”In the integration process, some employees with less skill, less talent or less commitment may not be employed in the new group; ”Trying to employ them in subsidiary companies or other work environments and reducing the stress of job loss among them is another important step in managing change in bank mergers.” With the average (3.33) and coefficient of variation (cv = 0.334), respectively, they play the biggest role in the causes of bank mergers in the future. [ABSTRACT FROM AUTHOR]

Purpose: The present study aims to comprehensively examine the impact of the Union Bank of Switzerland (UBS) takeover of Credit Suisse on the banking and financial services sector in the Indian stock market. To fully comprehend the impact of the event, the study separately investigates the response of private sector banks, public sector banks, overall banking companies and financial services companies to the takeover of the second-largest financial institution in Switzerland. Design/methodology/approach: The study employs event study methodology, using the market model, to analyze the event's impact on Indian banking and financial services sector stocks. The data consists of daily closing prices of companies included in the Nifty Private Bank Index, Nifty PSU Bank Index, Nifty Bank Index and Nifty Financial Services Index from the National Stock Exchange (NSE). Furthermore, cross-sectional regression analysis has been conducted to explore the factors that drive abnormal returns. Findings: The empirical findings of the study suggest the event had a heterogeneous impact on the stock prices of Indian banks and financial services companies. While public sector banks experienced a significant negative impact on select days within the event window, the overall Indian banking sector and financial services companies also witnessed notable declines. In contrast, Indian private sector banks were relatively resilient, exhibiting minimal effects. However, the cumulative effect is found to be insignificant for all four categories across different event windows. The study also observed that the cumulative abnormal returns (CARs) were significantly influenced by certain variables during different event windows. Originality/value: To the best of the authors' knowledge, the present study is the earliest attempt that investigates the impact of the UBS takeover of Credit Suisse on the Indian banking and financial services sector using event study methodology and cross-sectional regression model. [ABSTRACT FROM AUTHOR]

This study focuses on the Capital Gain of residential housing and its feasibility through bank financing in Hermosillo, Sonora. The purpose is to analyze the evolution of capital gain in the residential market and assess its possibility of acquisition through bank financing in the region. The main methodology includes a historical analysis of housing prices and a comprehensive evaluation of the current financing conditions provided by local banks. Key findings highlight a sustained increase in the capital gain of residential properties in Hermosillo. Economic and developmental factors have contributed to this constant growth. Furthermore, it has been proven that bank financing is a viable alternative for those interested in acquiring homes in this area. The capital gain in Hermosillo presents a promising outlook for both investors and buyers alike. The upward trend in housing prices, supported by favorable conditions in the local economy and urban development, highlights the potential for investment in the region. The availability of bank financing further facilitates access to the acquisition of residential properties, making it appealing for those seeking to invest in real estate in Hermosillo. In conclusion, this study underscores the viability of acquiring residential properties through bank financing and emphasizes the importance of considering capital gain as a valuable indicator in real estate decision-making in Hermosillo, Sonora. [ABSTRACT FROM AUTHOR]

Copyright of Global Journal of Economics & Business is the property of Refaad for Studies, Research & Development and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The global financial crisis of 2007–2009 is widely regarded as the worst since the Great Depression and threatened the global financial system with a total collapse. This article distinguishes itself from the vast literature of bankruptcy, bank failure, and bank exit prediction models by introducing novel categorical parameters inspired by Switzerland's banking landscape. We evaluate data from 274 banks in Switzerland from 2007 to 2017 using generalized linear model logit and multinomial logit regressions and examine the determinants of corporate restructuring and financial distress. We complement our results with a robustness test via a Bayesian inference framework. We find that total assets and net interest margin affect bank exit and mergers and acquisitions, and that banks operating in the Zurich area have a higher likelihood of exiting and becoming takeover targets relative to banks operating in the Geneva area. [ABSTRACT FROM AUTHOR]

The present paper examines the reasons that caused the fall of Dena Bank, which led to its merger with Bank of Baroda and Vijaya Bank (the merged bank is now known as Bank of Baroda). This paper measures the extent of deviations in financial performance and profitability of Dena Bank from 2007–08 to 2017–18. The findings of the study indicate that increasing non-performing assets and costs adversely impact the financial position of the fallen bank (Adhana, D., and Raghuvanshi, R. R. 2020. Big Bank Theory: A Study of Amalgamation Plan of 10 Public Sector Banks into 4 Entities. Available at SSRN 3559291). Further post-merger analysis from 2018–19 to 2021–22 shows that Bank of Baroda eventually incorporated the changes well. The finding would be helpful to investors, practitioners, academics, and policymakers to check the financial position of the bank to gain insights into the financial health of the bank and causes that led to its merger (Patel, R. 2018. Pre & post-merger financial performance: an Indian perspective. Journal of Central Banking Theory and Practice 7 (3): 181–200.). [ABSTRACT FROM AUTHOR]

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study aims to determine the impact of an M&A on the performance of the consolidating bank in relation to its competitors in both the intermediation and profitability approaches, in addition to proposing an M&A ranking metric for a more accurate performance analysis. Although some studies assess the performance of banks in M&As, the explanation of their impact on institutions in the market can be better explored by proposing a financial-operational metric, different from valuations by the stock market, complemented with the point of view of organizational strategies that appear in the literature as essential for the continuity of the resourcefulness of the topic. Assessing the consequences of bank M&As and understanding their intentions provides better management of both institutions and the country’s socioeconomic aspects. It also provides guidelines and new tools for performance evaluation for academics, managers, and government officials on M&A processes. The research method is quantitative-qualitative. In the quantitative approach, the data envelopment analysis (DEA) technique with a second stage of multiple linear regression was used. The database was formed by information from the banks’ financial statements from 2000 to 2018 (representing the CAMELS), supplemented with macroeconomic and market structure information. In the qualitative approach, the impact of these regressed variables was determined in the quantitative stage for four case studies, which are the Big4 banks that represent approximately 87% of the Brazilian financial market. Although some studies deal with the topic of the relationship between efficiency and M&As, this study shows that there is no clear and direct relationship between M&As and the performance (efficiency) of banks in the market. The results suggest that banks carry out M&As for reasons other than the search for efficiency, leaving efficiency as a consequence of the operation. This article contributes to the proposal of a new metric for measuring the efficiency of M&As, whose function is to establish a ranking and relativize the analysis of banks’ performance in relation to the market as a whole, allowing the visualization of the relative effect vis-à-vis competitors. [ABSTRACT FROM AUTHOR]

This paper examines capacity-constrained oligopoly pricing with sellers who seek myopic improvements. We employ the Myopic Stable Set solution concept and establish the existence of a unique pure-strategy price solution for any given level of capacity. This solution is shown to coincide with the set of pure-strategy Nash equilibria when capacities are large or small. For an intermediate range of capacities, it predicts a price interval that includes the mixed-strategy support. This stability concept thus encompasses all Nash equilibria and offers a pure-strategy solution when there is none in Nash terms. It particularly provides a behavioral rationale for different pricing patterns, including Edgeworth price cycles and states of hyper-competition with supply shortages. We also analyze the impact of a change in firm size distribution. A merger among the biggest firms may lead to more price dispersion as it increases the maximum and decreases the minimum myopically stable price. [ABSTRACT FROM AUTHOR]

This paper analyzes the soundness of government-owned Islamic banks before and after a merger. The research variables consist of Risk Profile as measured by Non-Performing Financing (NPF) and Financing to Deposit Ratio (FDR), Good Corporate Governance as measured by Net Open Position (NOP), Earnings as measured by Return on Assets (ROA), Return on Equity (ROE)) and Operational Efficiency Ratio (OER), and Capital as measured by the Capital Adequacy Ratio (CAR). Three government-owned Islamic banks before merger, namely Bank Rakyat Indonesia (BRI) Sharia, Bank Negara Indonesia (BNI) Sharia, Bank Sharia Mandiri (BSM) and one bank after merger namely Bank Sharia Indonesia (BSI) were selected as research objects. The study uses secondary data for the first quarter of 2019 to the third quarter of 2022. The hypothesis was tested with the Paired Sample T-Test and the Wilcoxon Signed Rank Test. The results show that the ratios of NPF, NOP, ROA, ROE, and OER have significant differences before and after the merger. Meanwhile, the ratios of FDR and CAR have no significant difference before and after the merger. This condition indicates that the ability of Islamic banks to manage FDR and CAR is quite good and remain in the soundness category before and after the merger. This study concludes that some of the soundness ratios of government-owned sharia banks are better after the merger. However, there are two ratios that are not significantly different either before or after the merger. The implication of this research is that the ability of the manager of a government-owned Islamic bank in managing the soundness of a bank greatly determines the sustainability of an Islamic bank. For further research, it is suggested to add the timeframe of the research. [ABSTRACT FROM AUTHOR]

This document is a compilation of academic articles and journals that explore the conversion of conventional banks to Islamic banks in Indonesia and other countries. The articles cover a range of topics including the reasons for conversion, the effects on assets and market share, challenges faced during the process, and the performance of Islamic banks compared to conventional banks. The articles provide valuable insights into the factors influencing conversion, customer preferences, and the legal aspects of the process. [Extracted from the article]

This study investigates the consequences of bank mergers on non-financial borrowers' working capital management. We find evidence that bank mergers increase corporate cash holdings and decrease receivables and investments in inventories by reducing bank credit availability. Bank mergers also decrease trade credit used through the reduction in bank credit availability. These findings are new contributions to the literature, suggesting that borrowing firms find it more difficult to manage working capital after bank mergers occur and that bank-dependent firms find it more difficult to manage working capital than their non-dependent counterparts after mergers. [ABSTRACT FROM AUTHOR]

We study human capital synergies in asset management mergers that stem from the improved ability to assign fund managers to more specialized tasks in larger firms. More specialized task assignment allows rotated managers to focus on their investment expertise and leads to incremental $54 million of value added per deal per year on average. The effects are concentrated in mergers that lead to a large increase in firm size and in funds whose management appears less specialized prior to the merger. Our results provide direct evidence on the role of firms in the assignment of tasks to fund managers. (JEL G23, J24, G34) [ABSTRACT FROM AUTHOR]

Increases in government debt are associated with a reduction in the yield spread between high-grade corporate bonds and long-term Treasuries and an increase in fiscal uncertainty. Consequently, increases in government debt significantly reduce the firm's likelihood of acquisition. The effect is stronger among firms whose debt is a closer substitute for Treasuries and firms with greater exposure to fiscal uncertainty. A positive change in government debt motivates acquirers to avoid cash financing or more irreversible deals. The average deal quality is lower during periods of rising public debt, consistent with heightened fiscal uncertainty impeding monitoring and fostering "bad" deals. (JEL D80, E22, E62, G18, G34, G38). [ABSTRACT FROM AUTHOR]

We show that banking relationships promote corporate environmental, social, and governance (ESG) policies. Specifically, banks are more likely to grant loans to borrowers with ESG profiles similar to their own and positively influence the borrower's subsequent ESG performance. Their influence is more pronounced when (1) banks have significantly better ESG ratings than borrowers and (2) borrowers are bank dependent. We exploit M&A among lenders as a source of quasi-exogenous variation in the lender's ESG standard to alleviate endogeneity concerns. Overall, our study presents the first evidence on the interplay between responsible bank lending and borrowers' ESG behavior. [ABSTRACT FROM AUTHOR]