Conflicts of interest between banks and firms: Evidence from Japanese mergers
نویسنده
چکیده
Article history: Received 16 November 2010 Accepted 9 April 2013 Available online 20 April 2013 This paper assesses conflicts of interest between banks and their client firms via the merger transaction by examining the wealth gain of merger acquirers who were listed on the Tokyo Stock Exchange in 1990–2004. The paper reports two main findings. First, acquiring firms did not gain from their acquisitions. Second, acquirers with stronger bank ties experienced larger wealth loss than those with weaker bank ties. These results are consistentwith the hypothesis that banks played a conflicted role in mergers during the examination period. © 2013 Elsevier B.V. All rights reserved. JEL classification: G21 G34 N25
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