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Can we breathe a sigh of relief now? The impact of First Republic Bank takeover by JP Morgan on the US equity markets

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  • Nobanee, Haitham
  • Azmi, Wajahat
  • Chakraborty, Dipanwita
  • Hamill, Philip Anthony
  • Nghiem, Xuan-Hoa

Abstract

This paper investigates the effects of the takeover of First Republic Bank (FRB) by JP Morgan Chase on different US equity indices. Results from an event-study approach reveal that this acquisition exerts no significant impact on US equity markets, indicating that these markets in the US are relatively immune to extreme shocks and therefore, could act as a safe haven for investors during times of high uncertainty.

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  • Nobanee, Haitham & Azmi, Wajahat & Chakraborty, Dipanwita & Hamill, Philip Anthony & Nghiem, Xuan-Hoa, 2023. "Can we breathe a sigh of relief now? The impact of First Republic Bank takeover by JP Morgan on the US equity markets," Finance Research Letters, Elsevier, vol. 58(PB).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pb:s154461232300716x
    DOI: 10.1016/j.frl.2023.104344
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    Cited by:

    1. Azmi, Wajahat & Azmi, Shujaat Naeem & Nobanee, Haitham & Hamil, Philip Anthony, 2024. "Out-of-this-world returns: How did the market value India's successful moon mission?," Economics Letters, Elsevier, vol. 234(C).
    2. Azmi, Wajahat & Azmi, Shujaat Naeem & Nobanee, Haitham & Hamill, Philip Anthony, 2023. "Uncovering the repercussions of the US's credit rating downgrade on global equity markets," Finance Research Letters, Elsevier, vol. 58(PD).

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