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.
ASJC Scopus subject areas
- Economics and Econometrics