Table 4 Stock market performance of...

Table 4

Stock market performance of acquiring banks after acquisitions

Year	PBR (%)			Total cumulative shareholder returns (%)
Year	JPM	BAC	WFC	JPM	BAC	WFC
2008	−30.30	−62.77	−23.23	−21.33	−57.88	−1.16
2009	−18.34	−51.97	−41.46	2.48	−55.88	−6.16
2010	−22.45	−55.62	−40.30	4.59	−58.88	7.84
2011	−41.21	−75.58	−50.20	−14.62	−75.88	−2.16
2012	−31.22	−59.06	−45.70	13.17	−62.36	22.84
2013	−14.54	−49.15	−34.12	51.37	−53.66	64.84
2014	−14.65	−44.29	−27.90	74.99	−48.15	101.84
2015	−15.07	−49.44	−31.48	78.51	−50.18	105.84
Number of observations	8	8	8	8	8	8
Median	−20.40	−53.79	−37.21	8.88	−56.88	15.34
Sign test (one-tailed p-value)	0.00	0.00	0.00	0.96	0.00	0.86
Mean	−23.47	−55.98	−36.80	23.65	−57.86	36.72
Mean test (one-tailed p-value)	0.00	0.00	0.00	0.93	0.00	0.97

Year	PBR (%)			Total cumulative shareholder returns (%)
Year	JPM	BAC	WFC	JPM	BAC	WFC
2008	−30.30	−62.77	−23.23	−21.33	−57.88	−1.16
2009	−18.34	−51.97	−41.46	2.48	−55.88	−6.16
2010	−22.45	−55.62	−40.30	4.59	−58.88	7.84
2011	−41.21	−75.58	−50.20	−14.62	−75.88	−2.16
2012	−31.22	−59.06	−45.70	13.17	−62.36	22.84
2013	−14.54	−49.15	−34.12	51.37	−53.66	64.84
2014	−14.65	−44.29	−27.90	74.99	−48.15	101.84
2015	−15.07	−49.44	−31.48	78.51	−50.18	105.84
Number of observations	8	8	8	8	8	8
Median	−20.40	−53.79	−37.21	8.88	−56.88	15.34
Sign test (one-tailed p-value)	0.00	0.00	0.00	0.96	0.00	0.86
Mean	−23.47	−55.98	−36.80	23.65	−57.86	36.72
Mean test (one-tailed p-value)	0.00	0.00	0.00	0.93	0.00	0.97

Note(s): The stock market 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. Data is hand-collected from annual reports of each bank. The stock market return assumes that all dividends are reinvested during the years. The null hypothesis for the sign test and t-test is that the median and mean of stock market performance measure are greater than or equal to zero respectively

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