IDEAS home Printed from
   My bibliography  Save this article

Mega-mergers in the US banking industry


  • Said Elfakhani
  • Rita Ghantous
  • Imad Baalbaki


Historically, financial markets have witnessed several consolidation trends. The year 1998, however, surpassed them all in volume and size of individual deals. This paper utilizes the event study approach to analyse the mega-mergers that took place in the banking industry during 1998, namely that of Travelers Group with Citicorp, NationsBank with BankAmerica, and Bank One with First Chicago NBD. A test of daily abnormal returns is conducted to find out the impact of each of the three mergers on shareholders' wealth from both the acquired and acquirer's perspective. The results obtained indicate that the market's reaction was positive during the on-event sub-period (i.e. days 0 and 1) for both the acquired and acquirer in the Travelers-Citicorp merger; only for the acquirer in the NationsBank-BankAmerica deal, and for the acquired firm in the case of Bank One-First Chicago NBD merger.

Suggested Citation

  • Said Elfakhani & Rita Ghantous & Imad Baalbaki, 2003. "Mega-mergers in the US banking industry," Applied Financial Economics, Taylor & Francis Journals, vol. 13(8), pages 609-622.
  • Handle: RePEc:taf:apfiec:v:13:y:2003:i:8:p:609-622
    DOI: 10.1080/0960310032000050669

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Peter Egger & Franz R. Hahn, 2006. "Endogenous Bank Mergers and Their Impact on Banking Performance," WIFO Working Papers 271, WIFO.
    2. Svetlana B. Avdasheva & Dina V. Tsytsulina, 2014. "The Effects Of Competition Policy: Merger Approval, Entry Barrier Removal, Antitrust Enforcement Compared," HSE Working papers WP BRP 34/FE/2014, National Research University Higher School of Economics.
    3. Avdasheva, Svetlana & Tsytsulina, Dina, 2015. "The effects of M&As in highly concentrated domestic vis-à-vis export markets: By the example of Russian metal industries," Research in International Business and Finance, Elsevier, vol. 34(C), pages 368-382.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apfiec:v:13:y:2003:i:8:p:609-622. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.