Abstract
This paper studies a sample of asset sale transactions completed by listed banks in OECD
countries to test whether methods of payments (cash vs. equity) and transaction characteristics
(e.g., domestic vs. cross-border) impact the shareholder’s wealth of buyers and sellers. We find
that market effects are higher when a bank uses their own equity to pay for assets and when
buyers and sellers are located in same country (i.e.; domestic deal). However, both effects are
mitigated for larger transactions. These results are new in banking literature and carry relevant
policy implications.
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