Please use this identifier to cite or link to this item: https://repositorio.insper.edu.br/handle/11224/4601
Type: Working Paper
Title: The Role of Restructuring in Bank M&As: Evidence from Branch-level Data
Author: Mariani, Lucas Argentieri
Ricca, Bernardo de Oliveira Guerra
Publication Date: 2022
Abstract: We study how banks restructure their operations after M&As and the implications for bank outcomes and credit provision. We leverage rich data at the branch level of private Brazilian banks, including labor force characteristics and financial information such as assets, liabilities, revenues, and costs. The consolidated conglomerates engage in substantial resources reallocation compared to their private counterparts. Acquirer and target branches are restructured on different margins. Labor is reallocated towards acquirer branches, which experience an increase in the quality of their loan officers. Restructuring increases profitability in both acquirer and target branches, in markets where the event leads to a meaningful increase in market power and in markets where it does not. Improvements in lending provision and deposits collection at acquirer branches, and cost reduction in target branches are behind this increase in profitability. Our results point out that restructuring is an essential value-creation mechanism of M&As above and beyond concentration gains, and that it reshapes the provision of financial services across the branch network of the new conglomerate.
Language: Inglês
CNPq Area: Ciências Sociais Aplicadas
URI: https://bernardoricca.wixsite.com/bricca
Copyright: O INSPER E ESTE REPOSITÓRIO NÃO DETÊM OS DIREITOS DE USO E REPRODUÇÃO DOS CONTEÚDOS AQUI REGISTRADOS. É RESPONSABILIDADE DOS USUÁRIOS INDIVIDUAIS VERIFICAR OS USOS PERMITIDOS NA FONTE ORIGINAL, RESPEITANDO-SE OS DIREITOS DE AUTOR OU EDITOR
Appears in Collections:Coleção de Working Papers

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