Table 3 Operating performance of...

Table 3

Operating performance of acquiring banks after acquisition

Year	ROE (%)			ROA (%)
Year	JPM	BAC	WFC	JPM	BAC	WFC
2008	−56.41	−78.80	−71.48	−57.66	−61.68	−61.67
2009	−41.03	−89.94	−45.41	−76.76	−84.77	−77.83
2010	−10.26	−89.97	−43.10	−68.48	−82.26	−70.98
2011	−2.56	−89.61	−34.90	−62.82	−77.99	−63.43
2012	−2.56	−82.05	−29.68	−70.78	−84.20	−69.13
2013	−17.95	−61.46	−24.97	−73.02	−77.89	−67.56
2014	−10.26	−79.41	−27.32	−71.14	−82.78	−68.84
2015	−2.56	−51.38	−31.47	−66.53	−73.77	−69.92
Number of observations	8	8	8	8	8	8
Median	−10.26	−80.73	−33.19	−69.63	−80.12	−68.98
Sign test (one-tailed p-value)	0.00	0.00	0.00	0.00	0.00	0.00
Mean	−17.95	−77.83	−38.54	−68.40	−78.17	−68.67
Mean test (one-tailed p-value)	0.02	0.00	0.00	0.00	0.00	0.00

Year	ROE (%)			ROA (%)
Year	JPM	BAC	WFC	JPM	BAC	WFC
2008	−56.41	−78.80	−71.48	−57.66	−61.68	−61.67
2009	−41.03	−89.94	−45.41	−76.76	−84.77	−77.83
2010	−10.26	−89.97	−43.10	−68.48	−82.26	−70.98
2011	−2.56	−89.61	−34.90	−62.82	−77.99	−63.43
2012	−2.56	−82.05	−29.68	−70.78	−84.20	−69.13
2013	−17.95	−61.46	−24.97	−73.02	−77.89	−67.56
2014	−10.26	−79.41	−27.32	−71.14	−82.78	−68.84
2015	−2.56	−51.38	−31.47	−66.53	−73.77	−69.92
Number of observations	8	8	8	8	8	8
Median	−10.26	−80.73	−33.19	−69.63	−80.12	−68.98
Sign test (one-tailed p-value)	0.00	0.00	0.00	0.00	0.00	0.00
Mean	−17.95	−77.83	−38.54	−68.40	−78.17	−68.67
Mean test (one-tailed p-value)	0.02	0.00	0.00	0.00	0.00	0.00

ROE (%)-sector ROE (%)
2008	7.95	2.47	1.33
2009	4.55	−4.75	1.02
2010	5.01	−8.29	−2.07
2011	4.63	−9.61	−1.85
2012	−2.94	−15.95	−8.40
2013	1.88	−5.78	−0.66
2014	1.17	−10.41	−2.83
2015	2.63	−5.39	−3.18
Number of observations	8	8	8
Median	3.59	−7.04	−1.96
Sign test (one-tailed p-value)	1.00	0.04	0.14
Mean	3.11	−7.22	−2.08
Mean test (one-tailed p-value)	0.99	0.00	0.05

ROE (%)-sector ROE (%)
2008	7.95	2.47	1.33
2009	4.55	−4.75	1.02
2010	5.01	−8.29	−2.07
2011	4.63	−9.61	−1.85
2012	−2.94	−15.95	−8.40
2013	1.88	−5.78	−0.66
2014	1.17	−10.41	−2.83
2015	2.63	−5.39	−3.18
Number of observations	8	8	8
Median	3.59	−7.04	−1.96
Sign test (one-tailed p-value)	1.00	0.04	0.14
Mean	3.11	−7.22	−2.08
Mean test (one-tailed p-value)	0.99	0.00	0.05

Note(s): The operating performance of each year is the relative value of each year minus the 3-year average of the relative values before takeover. The relative value of each year is calculated using the value of 2006, which is assumed to be 100, as the basis. The original ROE of bank sector is collected from http://www.damodaran.com. Other data is hand-collected from annual reports of each bank. The original ROA (%) is calculated using ROE, E/A and borrowing cost of banks which is the 3 month USD Libor. The null hypothesis for the sign test and t-test is that the median and mean of operating performance measure are greater than or equal to zero respectively

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