Restructuring transactions by bank holding companies: The valuation effects of sale-and-leasebacks and divestitures

Myron B. Slovin, Marie Sushka, John A. Polonchek

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)237-255
Number of pages19
JournalJournal of Banking and Finance
Volume15
Issue number2
DOIs
StatePublished - Apr 1991

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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