This study examines the value creation in banks from mergers and acquisitions (M&As) with financial technology startups (defined as Fintech) and whether these M&As outperformed the deals where non-fintech target firms were involved during the period from 2010 to 2018. From a sample of 759 deals, only in 37 of them are detected fintechs as targets. The cumulative abnormal returns of M&As are studied through the event study methodology using 21-day, 7-day and 3-day event windows. Furthermore, several regression analyses study the deal and firm characteristics that drive the impact of deals on acquirers’ value. The results indicate an overall 0.56% statistically significant abnormal return for banks when involving in M&As but no evidence of higher value creation in the case of fintech target firms. In addition, this research evidences that public target firms have a negative impact on the cumulative abnormal returns of acquirers, with a stronger effect by public fintech targets. Furthermore, the results indicate that multiple acquisitions have negative effect on banks, however no evidence was found in favour of the higher relative size.

Additional Metadata
Thesis Advisor Smajlbegovic, E.
Persistent URL hdl.handle.net/2105/52100
Series Economics
Citation
Tsipi, A. (2020, April 16). Do banks experience value creation from Fintech M&As in United States?. Economics. Retrieved from http://hdl.handle.net/2105/52100