Agricultural bank acquisitions and postacquisition performance: An examination of the role of shared knowledge

The US banking sector has consolidated through acquisitions in recent decades, resulting a significant decrease the number of lending institutions. Agricultural commercial banks have been preferred target such acquisitions, representing 15%–40% all between 1994 and 2018. In this study, we examine postacquisition performance that acquire agricultural terms profitability, bankruptcy risk, loan monitoring process We also test whether shared knowledge acquiring bank geography, product, culture affect outcomes. While document improved profitability from improvement is rather short-lived without long-term benefits. Also, do not find other measures. negative effect cultural knowledge, highlighting complex implications acquisitions. [EconLit Citations: G21, G34, Q1].