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Asset versus equity acquisitions by financial institutions

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  • Jennifer Brodmann
  • Charles Armah Danso
  • Surendranath Rakesh Jory
  • Thanh Ngo

Abstract

We examine the impact of asset versus equity acquisitions in generating firm value for financial institutions. We find that acquirers experience statistically and economically significantly higher cumulative abnormal returns in asset acquisitions compared to equity acquisitions. We analyze the announcement‐period returns and find that investors' reaction to asset acquisitions by financial institutions is met more favorably than are equity acquisitions. When employing the difference‐in‐differences approach, we find that asset acquisitions entail improved operating performance.

Suggested Citation

  • Jennifer Brodmann & Charles Armah Danso & Surendranath Rakesh Jory & Thanh Ngo, 2025. "Asset versus equity acquisitions by financial institutions," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 48(1), pages 387-423, March.
    • Handle: RePEc:bla:jfnres:v:48:y:2025:i:1:p:387-423
    DOI: 10.1111/jfir.12415
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