Abstract
Using bank cross-border M&As data on 59 deals from matching public-listed acquiring and target banks over 1995 to 2009, this paper address the international banking issue on corporate governance to exploit the uncovered role of difference in the degree of independent shareholder and board sizes between bidder and target banks on synergy gains in context of corporate valuation as M&As premiums. We indicate that acquiring bank engaging cross-border M&As with larger difference in the level of independent shareholder between bidder and target bank would obtain higher synergy gains in all cases of takeover premiums on 1 day, 1 week, and 4 weeks, respectively. In addition, financial differences never tested in previous studies significantly enhance synergetic gains. However, we find no evidence that both institutional and governance differences between bidder and target bank have significant impacts on takeover premiums.
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