TY - JOUR
T1 - Restructuring transactions by bank holding companies
T2 - The valuation effects of sale-and-leasebacks and divestitures
AU - Slovin, Myron B.
AU - Sushka, Marie
AU - Polonchek, John A.
N1 - Funding Information:
*Partial support for this research was provided by a Council of 100 Grant of the College of Business, Arizona State University and by the Dean’s Excellence Fund of the College of Business Administration, Oklahoma State University. ‘This literature is reviewed in Jensen and Ruback (1983). Empirical studies are summarized in Copeland and Weston (1988).
PY - 1991/4
Y1 - 1991/4
N2 - We examine the market valuation effects on bank holding companies of announcements of sale-and-leasebacks of structures and divestitures of major operating assets. We find effects that differ significantly from those observed for non-financial firms. Bank sale-and-leasebacks induce significantly negative excess returns while divestitures generate excess returns that are close to zero. In contrast, previous literature reports significantly positive returns for non-financial corporations for both types of events. We argue that this difference in results is likely to be a consequence of bank capital regulation.
AB - We examine the market valuation effects on bank holding companies of announcements of sale-and-leasebacks of structures and divestitures of major operating assets. We find effects that differ significantly from those observed for non-financial firms. Bank sale-and-leasebacks induce significantly negative excess returns while divestitures generate excess returns that are close to zero. In contrast, previous literature reports significantly positive returns for non-financial corporations for both types of events. We argue that this difference in results is likely to be a consequence of bank capital regulation.
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U2 - 10.1016/0378-4266(91)90066-U
DO - 10.1016/0378-4266(91)90066-U
M3 - Article
AN - SCOPUS:0041853409
SN - 0378-4266
VL - 15
SP - 237
EP - 255
JO - Journal of Banking and Finance
JF - Journal of Banking and Finance
IS - 2
ER -