Which credit unions are acquired?

Journal of Financial Services Research

Volumn 36, Issue 2, 2009, Pages 231-252

  Goddard, John ^a   McKillop, Donal ^b   Wilson, John O S ^c  

^a BANGOR UNIVERSITY   (United Kingdom)

^b QUEEN'S UNIVERSITY BELFAST   (United Kingdom)

^c UNIVERSITY OF ST ANDREWS   (United Kingdom)

Author keywords

Acquisition; Consolidation; Credit unions; Technology

Indexed keywords

EID: 70350374058     PISSN: 09208550     EISSN: None     Source Type: Journal    
DOI: 10.1007/s10693-009-0055-x     Document Type: Article

References (100)

1. Ackerberg DA, Gowrisankavan G (2006) Quantifying equilibrium network externalities in the ACH banking industry. Rand J Econ 37:738-761.
2. Akhavein JD, Berger AN, Humphrey DB (1997) The effects of mega mergers on efficiency and prices: Evidence from a bank profit function. Rev Ind Organ 12:95-139. doi:10.1023/A:1007760924829.
3. Akhavein J, Frame S, White LJ (2005) The diffusion of financial innovation: An examination of the adoption of small business credit scoring by large banking organizations. J Bus 78:577-596. doi:10.1086/427639.
4. Altunbas Y, Ibáñez DM (2008) Mergers and acquisitions and bank performance in Europe: The role of strategic similarities. J Econ Bus 60:204-222. doi:10.1016/j.jeconbus.2007.02.003.
5. Al-Sharkas A, Kabir Hassan M, Lawrence S (2008) The impact of mergers and acquisitions on the efficiency of the US banking industry: Further evidence. J Bus Finance Account 35:50-70. doi:10.1111/j.1468-5957.2007.02059.x.
6. Amel D, Rhoades S (1989) Empirical evidence on the motives for bank mergers. East Econ J 15:17-27.
7. Amel D, Barnes C, Panetta F, Salleo C (2004) Consolidation and efficiency in the financial sector: A review of the international evidence. J Bank Finance 28:2493-2519. doi:10.1016/j.jbankfin.2003.10.013.
8. Ashton JK, Pham K (2007) Efficiency and price effects of horizontal bank mergers (June). Centre for Competition Policy Working Paper 07-9.
9. Barron DN, West E, Hannan MT (1994) A time to grow and a time to die: growth and mortality of credit unions in New York City, 1914-1990. Am J Sociol 100:381-421. doi:10.1086/230541.
10. Bech ML, & Hobijn B (2006) Technology diffusion in central banking. Federal Reserve Bank of New York Staff Reports, No. 260, September 2006.
11. Beitel P, Schiereck D, Wahrenburg M (2004) Explaining M&A success in European banks. Eur Financ Manag 10:109-139. doi:10.1111/j.1468-036X.2004.00242.x.
12. Berger AN (1998) The efficiency effects of bank mergers and acquisition: A preliminary look at the 1990s data. In: Amihud Y, & Miller G (eds) Bank Mergers and Acquisitions. Kluwer Academic Publishers.
13. Berger AN, Humphrey D (1992) Mega mergers in banking and the use of cost efficiency as an antitrust defense. Antitrust Bull 37:541-600.
14. Berger AN, Mester LJ (1997) Inside the black box: What explains differences in the efficiencies of financial institutions? J Bank Finance 21:895-947. doi:10.1016/S0378-4266(97)00010-1.
15. Berger AN, Hannan TH (1998) The efficiency cost of market power in the banking industry: A test of the quite life and related hypotheses. Rev Econ Stat 80:454-465. doi:10.1162/003465398557555.
16. Berger AN, Demsetz R, Strahan P (1999) The consolidation of the financial services industry: Causes, consequences and implications for the future. J Bank Finance 23:135-194. doi:10.1016/S0378-4266(98)00125-3.
17. Berger AN, Kashyap AK, Scalise JM (1995) The transformation of the US banking industry: What a long strange trip it's been. Brookings Pap Econ Act 2:54-219.
18. Berkovitch E, Narayanan MP (1998) Motives for takeovers: An empirical investigation. J Financ Econ 48:347-362.
19. Black H, Dugger RH (1981) Credit union structure, growth and regulatory problems. J Finance 36:529-538. doi:10.2307/2327040.
20. Bolt W, Humphrey D, Uittenbogaard R (2008) Transaction pricing and the adoption of electronic payments: A cross-country comparison. Int J Cent Bank 4:89-123.
21. Borzekowski R, Cohen A (2005) Estimating strategic complementarities in credit unions' outsourcing decisions. Federal Reserve Board of Governors, Working Paper.
22. Boyd JH, Runkle DE (1993) Size and the performance of banking firms: Testing the predictions of theory. J Monet Econ 31:47-67. doi:10.1016/0304-3932(93)90016-9.
23. Broaddus JA (1998) The bank merger wave: causes and consequences. Fed Reserve Bank Richmond Econ Q 84(3):1-11.
24. Buch CM, De Long G (2004) Cross-border bank mergers: What lures the rare animal? J Bank Finance 28:2077-2102. doi:10.1016/j.jbankfin.2003.08.002.
25. Callahan and Associates (2007) 2007 technology roundtable. Callahan and Associates.
26. Campa JM, Hernando I (2006) M&As performance in the European financial industry. J Bank Finance 30:3367-3392. doi:10.1016/j.jbankfin.2006.06.006.
27. Carbó S, Humphrey DB, Fernández F (2003) Bank deregulation is better than mergers. J Int Financ Mark Inst Money 13:429-449. doi:10.1016/S1042-4431(03)00017-9.
28. Collins G (2003) The economic case for mergers: Old, new, borrowed, and blue. J Econ Issues 37:987-1009.
29. Copeland TE, Weston JF, Shastri K (2005) Financial theory and corporate policy, 4th edn. Englewood Cliffs, New Jersey, Prentice Hall.
30. Cornett MM, McNutt JJ, Tehranian H (2006) Performance changes around bank mergers: Revenue enhancements versus cost reductions,. J Money Credit Bank 38:1013-1051. doi:10.1353/mcb.2006.0053.
31. Cox DR (1972) Regression models and life tables. J Roy Statist Soc Ser B Methodological 34:187-220.
32. Courchane M, Nickerson D, Sullivan R (2002) Investment in Internet banking as a real option: Theory and tests. J Multinat Financ Manag 12:347-363. doi:10.1016/S1042-444X(02)00015-4.
33. Damanpour F (1991) Organizational innovations: A meta analysis of the determinants and moderators. Acad Manage J 34:555-590. doi:10.2307/256406.
34. Damanpour F (1992) Organizational size and innovation. Organ Stud 13:375-402. doi:10.1177/017084069201300304.
35. DeLong G, DeYoung R (2007) Learning by observing: Information spillovers in the execution and valuation of commercial bank M&As. J Finance 62:181-217. doi:10.1111/j.1540-6261.2007.01205.x.
36. Demsetz RS, Strahan PE (1997) Diversification, size, and risk at bank holding companies. J Money Credit Bank 29:300-313. doi:10.2307/2953695.
37. DeYoung R (1997) Bank mergers, X-efficiency, and the market for corporate control. Managerial Finance 23:32-47. doi:10.1108/eb018600.
38. DeYoung R, Lang W, Nolle D (2007) How the internet affects the output and performance of community banks. J Bank Finance 31:1033-1060. doi:10.1016/j.jbankfin.2006.10.003.
39. Dow JP (2007) The adoption of web banking at credit unions. Q Rev Econ Finance 47:435-448. doi:10.1016/j.qref.2006.08.014.
40. Feinberg RM (2001) The competitive role of credit unions in small local financial services markets. Rev Econ Stat 83:560-563. doi:10.1162/00346530152480207.
41. Feinberg RM, Rahman AFM (2001) A causality test of the relationship between bank and credit union lending rates in local markets. Econ Lett 71:271-275. doi:10.1016/S0165-1765(01)00365-2.
42. Focarelli D, Panetta F, Salleo C (2002) Why do banks merge? J Money Credit Bank 34:1047-1066. doi:10.1353/mcb.2002.0054.
43. Fried HO, Lovell CAK, Yaisawarng S (1999) The impact of mergers on credit union service provision. J Bank Finance 23:237-386. doi:10.1016/S0378-4266(98)00090-9.
44. Fuentes R, Hernandez-Murillo R, Llobet G (2006) Strategic on-line banking adoption. Federal reserve bank of St Louis Working paper.
45. Furst K, Lang WW, Nolle DE (2002) Internet banking. J Financ Serv Res 22:95-117. doi:10.1023/A:1016012703620.
46. Goddard J, McKillop D, Wilson JOS (2002) The growth of US credit unions. J Bank Finance 22:2327-2356. doi:10.1016/S0378-4266(01)00203-5.
47. Goddard J, Molyneux P, Wilson JOS (2004a) Dynamics of growth and profitability in banking. J Money Credit Bank 36:1069-1090. doi:10.1353/mcb.2005.0015.
48. Goddard J, Molyneux P, Wilson JOS (2004b) The profitability of European banks: a cross-sectional and dynamic panel analysis. Manchester School 72:363-381.
49. Goddard J, Wilson JOS (2005) US credit unions: An empirical investigation of size, age and growth. Ann Public Cooperative Econ 76:375-406. doi:10.1111/j.1370-4788.2005.00283.x.
50. Goddard J, Molyneux P, Wilson JOS, Tavakoli M (2007) European banking: An overview. J Bank Finance 31:1911-1935. doi:10.1016/j.jbankfin.2007.01.002.
51. Goddard J, McKillop DG, Wilson JOS (2008a) The diversification and financial performance of US credit unions. J Bank Finance 32:1836-1849. doi:10.1016/j.jbankfin.2007.12.015.
52. Goddard J, McKillop DG, Wilson JOS (2008b) Prompt Corrective Action and the determinants of US credit union capital-assets ratios. University of St Andrews school of management working paper.
53. Gort M (1969) An economic disturbance theory of mergers. Q J Econ 83:624-642. doi:10.2307/1885453.
54. Gorton G, Kahl M, Rosen R (2006) Eat or be eaten: A theory of mergers and firm size. Federal reserve bank of Chicago working paper, WP2006-14.
55. Goth P, McKillop DG, Ferguson C (2006) Building better credit unions. Joseph Rowntree Foundation, The Policy Press, Bristol UK.
56. Gowrisankavan G, Stavins J (2004) Network externalities and technology adoption. Rand J Econ 35:260-276. doi:10.2307/1593691.
57. Grabowski R, Mathur I, Rangan N (1995) The role of takeovers in increasing efficiency. Managerial Decis Econ 16:211-223. doi:10.1002/mde.4090160304.
58. Hadlock C, Houston J, Ryngaert M (1999) The role of managerial incentives in bank acquisitions. J Bank Finance 23:221-249. doi:10.1016/S0378-4266(98)00092-2.
59. Hannan TH (2003) The impact of credit unions on the rates offered for retail deposits by banks and thrift institutions. Board of Governors of the Federal Reserve System working paper 2003-6.
60. Hannan T, McDowell JM (1984) The determinants of technology adoption: The case of the banking firm. Rand J Econ 15:328-335. doi:10.2307/2555441.
61. Hannan T, McDowell JM (1986) Rival precedence and the dynamics of technology adoption: An empirical analysis. Economica 54:155-171. doi:10.2307/2554388.
62. Hannan TH, Rhoades S (1987) Acquisition targets and motives: The case of the banking industry. Rev Econ Stat 69:67-74. doi:10.2307/1937902.
63. Hannan TH, Piloff SJ (2006) Acquisition targets and motives in the banking industry. Finance and Economics Discussion Series, 2006-40. Federal Reserve Board.
64. Hernando I, Nieto M (2007) Is the internet delivery channel changing banks' performance? J Bank Finance 31:1083-1099. doi:10.1016/j.jbankfin.2006.10.011.
65. Houston JF, James CM, Ryngaert MD (2001) Where do merger gains come from? Bank mergers from the perspective on insiders and outsiders. J Financ Econ 60:285-331. doi:10.1016/S0304-405X(01)00046-0.
66. Jones KD, Critchfield T (2005) Consolidation in the US banking industry: Is the 'long, strange trip' about to end? FDIC Bank Rev 17:31-61.
67. Knapp M, Gart A, Becher D (2005) Post-merger performance of bank holding companies, 1987-1998. Financ Rev 40:549-574. doi:10.1111/j.1540-6288.2005.00124.x.
68. Kohers T, Mullis D (1987) Credit union size as a cause of different operating characteristics. Mid-South Bus J 28:14-18.
69. Mansfield E (1961) Technical change and the rate of imitation. Econometrica 29:741-766. doi:10.2307/1911817.
70. Mansfield E (1969) Industrial research and development: Characteristics, costs and diffusion results. Am Econ Rev 59:65-79.
71. McKillop DG, Goth P, Hyndman N (2006) The structure performance and governance of irish credit unions. Gill and McMillan, Institute of Chartered Accountants in Ireland, Dublin, Ireland.
72. Mitchell ML, Mulherin JH (1996) The impact of industry shocks on takeover and restructuring activity. J Financ Econ 41:193-229. doi:10.1016/0304-405X(95) 00860-H.
73. Moore RR (1997) Bank acquisition determinants: Implications for small business credit. Federal Reserve Bank of Dallas.
74. National Credit Union Administration (2006a) 2006 Annual report. NCUA.
75. National Credit Union Administration (2006b) Measuring service to members, NCUA letter to credit unions, Number 06-FCU-02. NCUA.
76. Nickerson D, Sullivan RJ (2003) Financial innovation, strategic real options and endogenous competition: Theory and tests. J Multinat Financ Manag 12:347-363.
77. Nolle DE (1995) Banking industry consolidation: past changes and implications for the future. Economic and Policy Analysis Working Paper 95-1. Office of the Comptroller of Currency.
78. Ono Y, & Stango V (2005) Outsourcing, firm size, and product complexity: Evidence from credit unions. Federal Reserve Bank of Chicago Economic Perspectives, 1st Quarter, 1-11.
79. Park K, Pennacchi G (2007) Harming depositors and helping borrowers: The disparate impact of bank consolidation. Federal Reserve Bank of Cleveland, Discussion Paper, 2007-04.
80. Peristiani S (1997) Do mergers improve the X-efficiency and scale efficiency of US banks? Evidence from the 1980s. J Money Credit Bank 29:326-337. doi:10.2307/2953697.
81. Pozzolo F, Focarelli D (2007) Cross-border M&As in the financial sector. Is banking different from insurance? Bank of Italy Working Paper.
82. Ralston D, Wright A, Garden K (2001) Can mergers ensure the survival of credit unions in third millennium. J Bank Finance 25:2277-2304. doi:10.1016/S0378-4266(01)00193-5.
83. Rhoades SA (1986) The operating performance of acquired firms in banking before and after acquisition, Staff Study Number 149, US Federal Reserve Board.
84. Rhoades SA (1998) The efficiency effects of bank mergers: An overview of case studies of nine mergers. J Bank Finance 22:273-291. doi:10.1016/S0378-4266(97)00053-8.
85. Roll R (1986) The hubris hypothesis of corporate takeovers. J Bus 59:197-216. doi:10.1086/296325.
86. Rossi S, Volpin P (2004) Cross-country determinants of mergers and acquisitions. J Financ Econ 74:277-304. doi:10.1016/j.jfineco.2003.10.001.
87. Saloner G, Shepard A (1995) Adoption of technologies with network effects: An empirical examination of the adoption of Automated Teller Machines. Rand J Econ 26:479-501. doi:10.2307/2555999.
88. Schmid F (2005) When for-profits and not-for profits compete: Theory and empirical evidence from retail banking. Managerial Finance 31:50-71. doi:10.1108/03074350510769965.
89. Shumway T (2001) Forecasting bankruptcy more accurately: A simple hazard function model. J Bus 74:101-124. doi:10.1086/209665.
90. Smythe DJ (2001) The great merger movement and the diffusion of electric power utilization in American manufacturing, 1899-1909. East Econ J 27:253-266.
91. Spindt PA, Tarhan V (1992) Are there synergies in bank mergers?. Working Paper, Tulane University, New Orleans.
92. Sullivan R, Wang Z (2005) Internet banking: An exploration in technology diffusion and impact, Payments System Research Department, Federal Reserve Bank of Kansas City, Working Paper 05-05.
93. Tokle RJ, Tokle JG (2000) The influence of credit union and savings and loan competition on bank deposit rates in Idaho and Montana. Rev Ind Organ 17:427-439. doi:10.1023/A:1007894216526.
94. US Government Accountability Office (2005) Financial institutions: Issues regarding the tax exempt status of credit unions, GAO-06-220 T. Government Accountability Office, Washington DC.
95. Wheelock DC, Wilson PW (2000) Why do banks disappear? The determinants of US bank failures and acquisitions. Rev Econ Stat 82:127-138. doi:10.1162/003465300558560.
96. Wheelock DC, Wilson PW (2004) Consolidation in US banking: Which banks engage in mergers? Rev Financ Econ 13:7-39. doi:10.1016/j.rfe.2003.09.001.
97. Wilcox JA (2006) Credit union conversion to banks: Facts, incentives, issues and reforms, Filene Research Institute.
98. Wilcox JA (2007) Credit unions, conversions, and capital, Federal Reserve Bank of San Francisco Economic Letter, Number 2007-16, June 22, 2007.
99. Worthington AC (2004) Determinants of merger and acquisition activity in Australian cooperative deposit taking institutions. J Bus Res 57:47-57. doi:10.1016/S0148-2963(02)00283-7.
100. Zhang W (1995) Wealth effects of US bank takeovers. Appl Financ Econ 5:329-336. doi:10.1080/758522760.