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University of Tennessee, Knoxville, University of Delaware, and University of Delaware, respectively. Funding for this research was made available by the University of Delaware Center for Financial Institutions Research and Education. Helpful comments by James W. Wansley, David C. Ketcham, Rene M. Stulz, and a referee for this Journal are gratefully acknowledged.
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Changes in Interstate Banking Laws: The Impact on Shareholder Wealth
Article first published online: 30 APR 2012
DOI: 10.1111/j.1540-6261.1990.tb03735.x
1990 The American Finance Association
Additional Information
How to Cite
BLACK, H. A., FIELDS, M. A. and SCHWEITZER, R. L. (1990), Changes in Interstate Banking Laws: The Impact on Shareholder Wealth. The Journal of Finance, 45: 1663–1671. doi: 10.1111/j.1540-6261.1990.tb03735.x
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University of Tennessee, Knoxville, University of Delaware, and University of Delaware, respectively. Funding for this research was made available by the University of Delaware Center for Financial Institutions Research and Education. Helpful comments by James W. Wansley, David C. Ketcham, Rene M. Stulz, and a referee for this Journal are gratefully acknowledged.
Publication History
- Issue published online: 30 APR 2012
- Article first published online: 30 APR 2012
- Abstract
- References
- Cited By
ABSTRACT
This study examines the impact on shareholder wealth of changes in interstate banking laws. The research demonstrates that changes in state statutes which allow interstate banking have a positive impact on the stock prices of regional banking organizations and a negative impact on the stock prices of money center banks. Interstate banking statutes initially exclude those states in which the money center banks are headquartered. The findings provide evidence that, by excluding money center banks from expansion across state lines, the competition from the regional banks may have an adverse competitive effect on the money center banks.