The competing risks of acquiring and being acquired: Evidence from Colombia's financial sector
AbstractThis paper studies the determinants of the probability of participating in a process of merging or acquisition for financial institutions in Colombia. We use survival analysis techniques and competing risks models to estimate the probability of participating in such processes as an acquiring or acquired firm. Using an especially rich database containing financial information of Colombian banks for the period 1990-2007, we find that both macroeconomic and microeconomic variables are important determinants of this probability. However, there are differential effects for the acquiring firm and the acquired firm. Particularly, while firm size and solvency are significant determinants of the probability of being an acquiring firm, efficiency is an important determinant of the probability of being acquired. Also, the concentration index, which plays no role for acquiring firms, plays an important role in the probability of being acquired.
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Bibliographic InfoArticle provided by Elsevier in its journal Economic Systems.
Volume (Year): 34 (2010)
Issue (Month): 4 (December)
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Web page: http://www.elsevier.com/locate/inca/621171
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Survival analysis Competing risk models Colombia;
Other versions of this item:
- Andrés Felipe García-Suaza & José Eduardo Goméz-Gonzáleza, . "The Competing Risks of Acquiring and Being Acquired: Evidence from Colombia´s Financial Sector," Borradores de Economia 567, Banco de la Republica de Colombia.
- Andrés Felipe García-Suaza & José Eduardo Gómez-González, 2009. "The Competing Risks of Acquiring and Being Acquired: Evidence from Colombia´s Financial Sector," BORRADORES DE ECONOMIA 005676, BANCO DE LA REPÚBLICA.
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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