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The Dynamics of Market Entry: The Effects of Mergers and Acquisitions on De Novo Entry and Small Business Lending in the Banking Industry Author info | Abstract | Publisher info | Download info | Related research | Statistics Allen N. Berger
Seth D. Bonime
Lawrence G. Goldberg
Lawrence J. White
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We study the dynamics of market entry following mergers and acquisitions (M&As), and the behavior of recent entrants in supplying output that might be withdrawn by the consolidating firms. The data, drawn from the banking industry, suggest that M&As are associated with subsequent increases in the probability of entry. The estimates suggest that M&As explain more than 20% of entry in metropolitan markets, and more than 10% of entry in rural markets. Additional results suggest that bank age has a strong negative effect on the small business lending of small banks, but that M&As have little influence on this lending.
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Paper provided by Wharton School Center for Financial Institutions, University of Pennsylvania in its series Center for Financial Institutions Working Papers with number
00-12.
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Date of creation: Feb 2000Date of revision:
Handle: RePEc:wop:pennin:00-12Contact details of provider: Postal: 3301 Steinberg Hall-Dietrich Hall, 3620 Locust Walk, Philadelphia, PA 19104.6367 Phone: 215.898.1279 Fax: 215.573.8757 Email: Web page: http://fic.wharton.upenn.edu/fic/ More information through EDIRC
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Keywords: Entry Barriers to Entry Bank Mergers Small Business Other versions of this item:
Find related papers by JEL classification: G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies L89 - Industrial Organization - - Industry Studies: Services - - - Other
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references Cited by : (explanations , 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.)
Joanna Stavins, 2004.
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Allen N. Berger & Lawrence G. Goldberg & Lawrence J. White, 2001.
"The effects of dynamic changes in bank competition on the supply of small business credit ,"
Finance and Economics Discussion Series
2001-35, Board of Governors of the Federal Reserve System (U.S.).
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Allen N.Berger & Lawrence G. Goldberg & Lawrence J. White, 2001.
"The Effects of Dynamic Changes in Bank Competition on the Supply of Small Business Credit ,"
Working Papers
01-07, New York University, Leonard N. Stern School of Business, Department of Economics.
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"The Effects of Dynamic Change in Bank Competition on the Supply of Small Business Credit ,"
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01-07, New York University, Leonard N. Stern School of Business-.
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