Hostname: page-component-77c89778f8-m42fx Total loading time: 0 Render date: 2024-07-25T01:02:25.887Z Has data issue: false hasContentIssue false

The Benefits and Costs of Bank Mergers**

Published online by Cambridge University Press:  19 October 2009

Extract

The pros and cons of bank mergers and multiple-office banking are in the forefront of bank policy consideration today [8, p. 19] Commercial banks have Joined the industrial and merchandising files., as well as the transportation companies, to sweil a rising tide of merger; The Comptroller of the Currency has reported that nearly 2,000 banks with resources of over $40 billion, were acquired by other banks between 1950 and 1962, inclusive, [47, p. ll].

Type
Research Article
Copyright
Copyright © School of Business Administration, University of Washington 1966

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1.Alchian, Armen A. and Kessel, Reuben A., “Competition; Monopoly, and the Pursuit of Money,”in Aspects of Labor Economics, A Conference of the Universities—National; Bureau Committee for Economic Research, Princeton: Princeton University Press, 1962, pp. 157175.Google Scholar
2.Alhadeff, David and Charlotte, , “Growth of Large Banks, 1930–1960,” Review of Economics and Statistics, Vol. 46, No. 4 November 1964, pp. 356363.CrossRefGoogle Scholar
3.Alhadeff, Charlotte P. and David, A., “Recent Bank Mergers,” Quarterly Journal, of Economics, Vol. LXIX, No. 4, November 1955, pp. 503533.CrossRefGoogle Scholar
4.Baumol, William, “On the Theory of the Expansion of the Firm,” American Economic Review, Vol. LIII, No. 5, December 1963, pp. 10781087.Google Scholar
5.Berle, A. A. Jr., Power Without Property, New York: Harcourt, Brace, 1959.Google Scholar
6.Berle, A. A. Jr., The Twentieth Century Capitalist Revolution, New york: Harcourt, Brace, 1954.Google Scholar
7.Berle, A. A. Jr., and Means, Gardiner C., The Modern Corporation and Private Property, New York: Commerce Clearing House, Inc., 1932.Google Scholar
8.Board of Governors, Federal. Reserve System, Fed. Res. Bulletin, September 1963.Google Scholar
9.Board of Governors, Fed. Res. Bull., November 1964.Google Scholar
10.Board of Governors, Fed. Res. Bull., September 1965.Google Scholar
11.Bossons, , John, , Cohen, Kalman J. and Reid, Samuel Richardson, “Mergers for Whom—Managers or Stockholders?” Economic Concentration, Part V. Committee on the Judiciary, Subcommittee on Antitrust and Monopoly, Washington, 1966.Google Scholar
12.Brotter, Herbert, “The Comptrollers Proposal for Strengthening Dual Banking,” Banking, Vol. LVII, No. 6, December 1964, p. 41f.Google Scholar
13.Burnham, J., The Managerial Revolution, New York: The John Day Co., 1941.Google Scholar
14.Chandler, Lester V., The Economics of Money and Banking, New York: Harper and Rt. w, Fourth Edition, 1964.Google Scholar
15. Committee on Banking and Currency, Subcommittee on Domestic Finance, House Cf Representatives, The Market for Bank Stock, Washington, 1964.Google Scholar
16.Costello, Timothy, Kubis, Joseph F. and Shaffer, Charles L., “An Analysis of Attitudes Toward A Planned Merger,” Administrative Science Quarterly, Vol. 8, No. 2, September 1963, pp. 235249.CrossRefGoogle Scholar
17.Crosse, Howard D., “Banking Structure and Competition,” Journal of Finance, Vol. XX, No. 2, May 1965, pp. 349357.CrossRefGoogle Scholar
18.Crosse, Howard D, Management Policies for Commercial Barks, Englewood Cliffs, New Jersey: Prentice-Hall, Inc., 1952.Google Scholar
19.Cyert, Richard M., and March, James G., A Behavioral Theory of the Firm, Englewood Cliffs, N. J.: Prentice-Hall, Inc., 1963.Google Scholar
20.Eells, Richard, The Meaning of Modern Business, New York: Columbia University Press, 1960.CrossRefGoogle Scholar
21.Edwards, Franklin R., “The Banking Competition Controversy,” National Banking Review, Vol. 3, No. 1, September 1965, pp. 134.Google Scholar
22.Encernacion, J. Jr., “Constraints and the Firm's Utility Function,” Review of Economic Studies, Vol. 31 No. 36, April 1954, pp. 113119.CrossRefGoogle Scholar
23.Gordon, R. A., Businass Leadership in the Modern Corporation, Washington: Ths Brookings Institute, 1945.Google Scholar
24.Hall, George R., and Phillips, Charles F. Jr., Bank Mergers and the Regulation Agencies, Washington: Board of Governors of the Federal Reserve System, 1964.Google Scholar
25.Hart, P., and Prais, S., “The Analysis of Business Concentration: A Statistical Approach,” Journal of the Royal Statistical Society, Series A, Vol. 119. 1956, pp. 150181.CrossRefGoogle Scholar
26.Hefflebower, R. B., “Corporate Mergers: Policy and Economic Analysis,” Quarterly Journal of Economics, Vol. LXVII, No. 4, November 1963, pp. 537559.CrossRefGoogle Scholar
27.Hodgman, Donald R., “Competition in Banking and Its Regulation,” The Barkers Magazine, Vol. 147, No. 1, Winter 1954, pp. 4655.Google Scholar
28.Horvitz, Paul M., “Stimulating Bank Competition Through Regulatory Action,” Journal of Finance, Vol. 1, March 1965, pp. 113.CrossRefGoogle Scholar
29.Horvitz, Paul M., and Shull, Bernard, “The Impact of Branch Banking in Bank Performance,“ National Banking Review, Vol. 2, No. 2, December 1964, pp. 143188Google Scholar
30.Jacobs, Donald P., “The Interaction Effects of Restrictions on Branching and Other Bank Regulations,” Journal of Finance, Vol. XX, No. 2, May 1965, pp. 332348.CrossRefGoogle Scholar
31.Kaufman, George, “Bank Market Structure and Performance: The Evidence from Iowa,” Southern Economic Journal, Vol. XXXII, No. 4, April, 1966, pp. 429439.CrossRefGoogle Scholar
32.Lamb, W. Ralph, Group Banking, New Brunswick: Rutgers University Press, 1962.Google Scholar
33.Lindquist, Robert, The Bank and Its Public: Philosophy and Technique of Bank Public Relations, New York: Harper and Bros., 1956.Google Scholar
34.Mace, Miles L., and Montgomery, George Jr., Management Problems of Corporate Acquisitions, Boston: Harvard University Press, 1962.Google Scholar
35.Mason, E. S., ed., The Corporation in Modern Society, Cambridge: Harvard University Press, 1959.CrossRefGoogle Scholar
36.Maurer, H., Great Enterprise: Growth and Behavior of the Big Corporation, New York: Macmillan, 1955.Google Scholar
37.Miller, Merton H., and Modigliani, Franco, “Dividend Policy, Growth and the Valuation of Shares,” Journal of Business, Vol. XXXIV, No. 4, October 1961, pp. 411433.CrossRefGoogle Scholar
38.Modigliani, Franco, and Miller, Merton H., “The Cost of Capital, Corporation Finance, and the Theory of Investment,” American Economic Review, Vol. XLVIII, No. 3, June 1958, pp. 261297.Google Scholar
39.Nelson, Ralph L., Merger Movements in American Industry, Princeton: Princeton University Press, 1959.Google Scholar
40.New York State Banking Department, Branch Banking, Bank Mergers and the Public Interest—A Summary Report, January 1964.Google Scholar
41.Nordquist, Gerald L., “The Breakup of the Maximization Principle,” Quarterly Review of Economics and Business, Vol. 5, No. 35Fall 1965, pp. 337446.Google Scholar
42.Penrose, Edith, The Theory of the Growth of the Firm, Oxford, Basil Blackwell, 1959.Google Scholar
43.Phillips, Almarin, “Competition, Confusion and Commercial Banking,” Journal of Finance, Vol. XIX, No. 7, March 1964, pp. 3245.Google Scholar
44. Select Committee on Small Business, U. S. Senate, Special Staff Report of the Board of Governors of the Federal Reserve System, “Recent Developments in the Structure of Banking,” Washington, 1962.Google Scholar
45.Smith, Tynan, “Research into the Effects of Banking Structure upon Performance,” unpublished paper presented in St. Louis on October 20, 1965 to the Committee on Financial Analysis.Google Scholar
46.U. S. Treasury Department, Ninety-Ninth Annual Report of the Comptroller of the Currency, Washington, 1961.Google Scholar
47.U. S. Treasury Department, One-Hundredth Annual Report of the Comptroller of the Currency, Washington, 1962.Google Scholar
48.Williamson, Oliver W., The Economics of Discretionary Behavior: Managerial Objectives in a Theory of the Firm, Englewood Cliffs, N. J.: Prentice-Hall, 1964Google Scholar