Pilloff, S.J., Santomero, A.M., 1998. The value effects of bank mergers and acquisitions, edited by Y. Amihud and G. Miller, Bank Mergers & Acquisitions, Kluwer Academic (Boston, MA), 59-78.  Home/Search   Document Details and Download   Summary   Related Articles   Check

....less efficient institution, presumably at least in part to spread the expertise or operating policies and procedures of the more efficient institution over additional resources. In the U.S. acquiring banks 6 appear to be more cost efficient than target banks on average (Berger and Humphrey 1992, Pilloff and Santomero 1998). Another study of U.S. banks found that acquiring banks are more profitable and have smaller nonperforming loan ratios than targets (Peristiani 1993) Simulation evidence also suggests that large Xefficiency gains are possible if the best practice banks merge and reform the practices of the least ....

....on uninsured funds. One study used a Tornqvist productivity index, a value weighted output index divided by a value weighted input index, which is similar to profit efficiency and obtained consistent findings (Fixler and Zieschang 1993) The study of the diversification gains discussed 26 See Pilloff and Santomero (1998) for additional review of the bank M A efficiency literature, see Calomiris 21 (1999) for criticisms of this approach, and see Morgan (1998) for additional review of the diversification benefits of consolidation. above (Hughes, Lang, Mester, and Moon 1999) also conducted a dynamic analysis by ....

Pilloff, S.J., Santomero, A.M., 1998. The value effects of bank mergers and acquisitions, edited by Y. Amihud and G. Miller, Bank Mergers & Acquisitions, Kluwer Academic (Boston, MA), 59-78.

....still draw rather strong policy conclusions. 26. The bank should, of course, consider the impact of the action on its creditors. However, the impact on the creditors is important through its affect on the expected profitability of the action to the firm s shareholder. 27. See Pilloff (1996) and Pilloff and Santomerro (1997) for a review of the literature on merger effects. 28. While acquiring another firm may reduce shareholder wealth, such actions are unlikely to 53 materially increase a bank s risk of failure given that bank supervisors must have approved all acquisitions during the Bliss and Flannery sample ....

Pilloff, S.J. and A.M. Santomero (1997). The value effects of bank mergers and acquisitions.

....decisions and related capabilities) it was not possible to use market measures of performance based on stock price reations at the time of the announcement. Our measures are however consistent with the most fine grained operating performance measures used in acquisition studies (Rhoades, 1994; Pilloff Santomero, 1997). To the extent that there would be noise in the measures, we feel that this limitation is offset by the substantial R squared statistics reported in our models. 33 This study of acquisitions is an initial exploration of the mechanisms underlying the development of organizational capabilities ....

Pilloff, S. J. & Santomero, A. M. 1997. The value effects of bank mergers and acquisitions. In Mergers of financial institutions (ed.) Y. Amihud and G. Miller. Irwin Professional Pubblications, New York (forthcoming).

.... Rhoades finds no evidence of either value creation or value destruction on average from bank mergers (Rhoades, 1994) and the field is reaching the conclusion that there is a need for a more in depth investigation of the conditions under which these transactions create and destroy value (Pilloff Santomero, 1997). It might be possible, in other words, that there are certain conditions under which acquirers are able to consistently create value; the quest is then better defined in terms of the search for explanation of the variance of acquisition performance, as opposed to the assessment of the location of ....

Pilloff S.J. & A.M. Santomero, 1997. The value effects of bank mergers and acquisitions.

....1996, par. 4.3.4) According to Securities Data Corporation, between January 1991 and April 1996 the value of European deals totaled 77.9 billion US Dollars compared with 193.6 in the US. To date, most of the available knowledge on M As in banking comes from scrutiny of the American market. Pilloff and Santomero (1998) review the voluminous empirical literature on the US experience. The authors point to the following paradox: despite academic studies showing no significant gains in value or performance from bank mergers, the number and value of new mergers in the US continues to grow unabated European M A ....

....publications of Morgan Stanley Capital International. Due to the presence of different regulations across Europe, we were unable to follow the US practice of not including M A deals resulting from rescue motivations; this should bias downward our value creation estimates. In addition, we followed Pilloff and Santomero (1998) suggestions and did not purge the sample from a few instances of repeated bidder activity. In Table 1 we present a summary statistics of the final sample. Panel A gives first a classification by type of deal and by year. It has to be noted that type classification is largely overlapped. For ....

Pilloff S.J. and A. M. Santomero, 1998, The value effects of bank mergers and acquisitions, in Y. Amihud and G. Miller (Editors), Bank Mergers and Acquisitions, Kluwer, pp.

....from past experience is another matter. To address this issue, the banking literature has examined both cost structures across bank asset size and the cost effects of bank mergers in a number of different, but hopefully complementary ways (Akhavein, Berger, and Humphrey, 1997, Berger, 1998, Pilloff and Santomero, 1998). Almost universally the gains from strict cost efficiency are seen as illusory. Many reasons are offered for this lack of empirical evidence. The most compelling seems to be that product specific cost efficiencies are offset by managerial or span of control issues. Many have argued that operating ....

Pilloff, Steven J. and A. M Santomero. 1998 "The Value Effects of Bank Mergers and Acquisitions", in Mergers of Financial Institutions, Y. Amihud, G. Miller, Editors, Irwin Professional Publications.

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