Regulatory Regime Changes and Acquisition Attributes: The Case of Commercial Bank and Thrift Acquisitions of Thrifts

Cebenoyan, F., A.S. Cebenoyan and E. S. Cooperman; Regulatory Regime Changes and Acquisition Attributes: The Case of Commercial Bank and Thrift Acquisitions of Thrifts; Quarterly Journal of Finance and Accounting, V 47 (1), 2008, pp. 27-52.

38 Pages Posted: 22 Jan 2016

See all articles by Fatma Cebenoyan

Fatma Cebenoyan

City University of New York, CUNY Hunter College - Department of Economics

A. Sinan Cebenoyan

Hofstra University - Frank G. Zarb School of Business; New York University (NYU) - Department of Finance

Elizabeth S. Cooperman

University of Colorado Denver

Date Written: January 20, 2016

Abstract

Significant change in regulations affecting bank/thrift activities during the 1990’s provide us with an opportunity to examine for shifts in acquisition characteristics as deregulation leads to changes in behavior. Consistent with a regime change hypothesis, we find a structural change in acquisition attributes for pre- and post deregulation periods. We also report significant differences in target attributes depending on acquirer identity. Our results demonstrate a higher likelihood in the deregulated period after 1994 for banks to acquire profit inefficient thrifts, while thrift acquirers focus mainly on building size. In contrast, regulatory concerns appear to dominate in prior years, with capitalization as a key acquisition characteristic by thrift acquirers. The results suggest that regimes need to be controlled for in research to allow generalizations beyond period-specific implications.

JEL Classification: G21

Suggested Citation

Cebenoyan, Fatma and Cebenoyan, Ahmet Sinan and Cooperman, Elizabeth S., Regulatory Regime Changes and Acquisition Attributes: The Case of Commercial Bank and Thrift Acquisitions of Thrifts (January 20, 2016). Cebenoyan, F., A.S. Cebenoyan and E. S. Cooperman; Regulatory Regime Changes and Acquisition Attributes: The Case of Commercial Bank and Thrift Acquisitions of Thrifts; Quarterly Journal of Finance and Accounting, V 47 (1), 2008, pp. 27-52., Available at SSRN: https://ssrn.com/abstract=2719219

Fatma Cebenoyan (Contact Author)

City University of New York, CUNY Hunter College - Department of Economics ( email )

695 Park Avenue
New York, NY 10021
United States

Ahmet Sinan Cebenoyan

Hofstra University - Frank G. Zarb School of Business ( email )

Dept. of Finance
Hempstead, NY 11549
United States
516-463-5702 (Phone)

New York University (NYU) - Department of Finance ( email )

Stern School of Business
44 West 4th Street
New York, NY 10012-1126
United States

Elizabeth S. Cooperman

University of Colorado Denver ( email )

Campus Box 165, P.O. Box 173364
Denver, CO 80217
United States
303-315-8422 (Phone)
303-315-8084 (Fax)

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