National Chiao Tung University;Taiwan Taipei University;Davicom Semiconductor Inc
In this paper, we investigate the long-run post-merger performance of Asian acquiring bank by using 293 deals in the 1997-2007 periods. We find the Asian acquiring banks experience negative long-term abnormal returns and are not efficiency improving following mergers and acquisition. However, DeYoung, Evanoff and Molyneux (2009) find European bank mergers appear to have resulted in both efficiency gains and stockholder value enhancement and North American bank mergers are efficiency improving, although the event-study literature presents a mixed picture regarding stockholder wealth creation. Therefore, our empirical results show that the long run stock returns and operating performance of Asian commercial bank mergers are different from those of the US and EU markets. In general, the long run stock performance and operating performance of Asian commercial bank merger and Acquisition are negative andAsian commercial bank merger and Acquisition cannot create synergy in the long run.