The competitive effect of a bank megamerger on credit supply

Fraisse, Henri; Hombert, Johan; Lé, Mathias

doi:10.1016/j.jbankfin.2018.06.011

Cited by 34 publications

(7 citation statements)

References 17 publications

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“…(2) Megamerger and partnership between nodes Megamerger refers to the cooperative relationship between enterprises, industries, or people, which belongs to the concept of management [18]. A megamerger is an acquisition or merger of two existing companies.…”

Section: A the Basic Parametersmentioning

confidence: 99%

Is Megamerger Better?–Based on the Link Prediction Perspective

Wang

2022

IEEE Access

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Link prediction provides insight into the evolutionary mechanisms of complex networks by predicting missing edges. Existing research has proposed many similarity algorithms based on local information, and some link prediction algorithms typically perform better in different networks. It is generally believed that a megamerger is beneficial. In the perspective of link prediction, merging the good-performing algorithms brings higher prediction accuracy. And the more times the experiment is executed, the higher the accuracy of link prediction. Therefore, this research proposes a new link prediction algorithm based on the theory of megamerger in management and the concept of partnership, and uses ten actual complex networks for experiments to test the above two hypotheses. The experimental results show that megamerger is not applicable to the link prediction algorithm. In addition, there is no positive correlation between the increasing the quantity of experiments and improving the accuracy of the experiments, so the above two hypotheses are rejected. Hence, this research presumes that megamerger of the comprehensive information of the network, such as the resource flow between nodes, the degree of common neighbor nodes, and partnership of nodes, does not improve the accuracy of link prediction. For a refined network with a small number of nodes and a short average path length, it is recommended that the quantity of experiments be set to only ten can achieve the required accuracy of link prediction.INDEX TERMS Link prediction, megamerger, complex network.

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Section: A the Basic Parametersmentioning

confidence: 99%

Is Megamerger Better?–Based on the Link Prediction Perspective

Wang

2022

IEEE Access

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“…Although answering that question would require expanding the scope of this paper, we offer three potential explanations. First, the French banking sector has experienced a continuous trend of concentration that accelerated during the mid-2000s, reducing competition among the major lenders (Fraisse, Hombert, and Lé (2018)). Second, local public entities are not set up to maximize profits and so are likely less motivated (than are private firms) to reduce prices via competition.…”

Section: The Financing Of Local Public Entitiesmentioning

confidence: 99%

Private Credit Under Political Influence: Evidence from France

2019

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“…However, empirical studies provide evidence that bank consolidation may have a detrimental effect on the relationship benefits. Specifically, consolidating banks tend to reduce the amount of lending or terminate lending relationships, possibly due to the re-evaluation of existing borrowers (e.g., Berger et al (1998);Focarelli et al (2002); Sapienza (2002); Carow et al (2006); Bonaccorsi di Patti and Gobbi (2007); Degryse et al (2011), Fraisse et al (2018). These detrimental effects occur due to the loss of soft information following a merger-induced increase in the organizational complexity (Erel (2011), Ogura and Uchida (2014)).…”

Section: Introductionmentioning

confidence: 99%