FIN-02-058 |
NYU Stern School of Business |
The Determinants of Takeovers: Recent Evidence from U.S.
Thrifts
December 2002
Fatma Cebenoyan, A. Sinan Cebenoyan and Elizabeth S. Cooperman
ABSTRACT
This paper is the first to examine the determinants of acquisitions for the
U.S. thrift industry during a period of market liberalization and widespread
takeover activity, 1994 to 2000. We focus on managerial cost inefficiency as
a takeover determinant. We first estimate a stochastic cost inefficiency score
for each stock thrift for every year. In a second stage, we examine the relationship
between cost inefficiency and the likelihood of a firm's takeover, among other
factors. We find that cost inefficiency reduces the probability of a takeover,
all else equal. However, significant differences in factors exist for takeovers
by other thrifts or by banks.
JEL Classification: G34, G32, G33, G21
Fatma Cebenoyan
Hunter College, City University of New York
A. Sinan Cebenoyan
Institution: Stern School of Business, New York University, 44th West 4th Street,
NY 10012
Telephone: (212) 998-0332
Fax: (212) 995-4233
Email: acebenoy@stern.nyu.edu
Homepage: http://www.stern.nyu.edu/~acebenoy
Elizabeth S. Cooperman
University of Colorado at Denver
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