Date of Award

5-2006

Degree Type

Dissertation

Degree Name

Ph.D.

Degree Program

Financial Economics

Department

Economics and Finance

Major Professor

Gleason, Katherine

Second Advisor

Varela, Oscar

Third Advisor

Naka, Atsuyuki

Fourth Advisor

Whitney, Gerald

Fifth Advisor

Mukherjee, Tarun

Abstract

We study, using the non-parametric data envelopment approach, we investigated the long-run profit efficiency dynamics and the short-run market reaction of nine pre-classified merger deals of merging and non-merging U.S. banks over the time period from 1992 to 2003. Our main results are as follows: First, merger deals that match least efficient acquirers with the least efficient targets could improve their profit efficiency four years following the merger event, unlike all other merger deals. Second, we find that mergers match least efficient acquirers with the least efficient targets could also achieve significant positive cumulative access returns (CARs) while all other deals were followed by significant negative CARs. Third, we find that, in general, that large-size acquirers have and maintain higher and efficiency scores than targets and non-merging banks. Fianally, the value-maximizing mergers are mostly large in size and match banks with clear chances to increase their future efficiency rankings.

Rights

The University of New Orleans and its agents retain the non-exclusive license to archive and make accessible this dissertation or thesis in whole or in part in all forms of media, now or hereafter known. The author retains all other ownership rights to the copyright of the thesis or dissertation.

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