Do Mergers Improve Information ? Evidence from the Loan Market

  • FABIO PANETTA FABIANO SCHIVARDI MATTHEW SHUM
  • Published 2009

Abstract

We examine the informational effects of M&As by investigating whether bank mergers improve banks’ ability to screen borrowers. By exploiting a data set in which we observe a measure of a borrower’s default risk that the lenders observe only imperfectly, we find evidence of these informational improvements. Mergers lead to a closer correspondence between… (More)

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