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dc.contributor.authorYi, Ha Chin ( Orcid Icon 0000-0002-6394-1348 )en_US
dc.date.accessioned2009-08-13T10:06:37Z
dc.date.available2012-02-24T10:05:54Z
dc.date.issued2008-01-01en_US
dc.identifier.urihttps://digital.library.txstate.edu/handle/10877/2794
dc.descriptionResearch Enhancement Program Final Reports.
dc.description.abstractThis study focuses on the reasons for and the implications of banks' decisions to acquire non- bank financial service firms (non-banks). The choice to acquire non-banks is driven by both external forces such as deregulation and regulatory capital and by internal forces such as a diversification strategy and efforts to enhance revenue and return to equity holders. We find that whereas the impact of acquiring non-banks increases their non-interest income, it also increases their non-interest expense. The net effect of choosing non-bank acquisitions lowers their subsequent return on assets, market value, and stock returns, as well as increasing their risk. However, the non-bank acquisitions do significantly increase the acquiring banks top executives' subsequent compensation. We conclude that non-bank acquisitions are driven by both regulatory and strategic forces within the banking industry. However, such acquisitions manifest into agency problems.en_US
dc.formatText
dc.format.extent1 page
dc.format.medium1 file (.pdf)
dc.language.isoen
dc.subjectBanksen_US
dc.subjectFinancial service firmsen_US
dc.subjectFinancingen_US
dc.subjectFinancial motivationsen_US
dc.subject.classificationBusinessen_US
dc.subject.classificationFinance and Financial Managementen_US
dc.titleA Study of Consolidations between Banks and Non-Banks: Motivations and Consequencesen_US
txstate.documenttypeResearch Report


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