Performance Changes of EU Bank M&As: Key Determinants and Relationships with Banking Market Integration
Abstract
Using the panel data of bank M&As in EU 28 countries between 1997 and 2015, this paper applies fixed-effect model and Granger-causality test to analyze the determinants of performance changes of EU bank M&As and the relationship between performance changes and banking market integration. This study finds that (1) cross-border M&As results in the decrease of acquirers’ long- and medium-term performance; (2) acquirers with higher safety, whose banking markets are less concentrated, and who only participate in domestic M&As are more likely to have higher performance in the long- and medium-term; (3) the increase of EU banking market integration leads to the increase of acquirers’ performance in the long- and medium-term.
Keywords
Full Text:
PDFReferences
Beccalli, E. and Frantz, P. (2009). M&A Operations and Performance in Banking. Journal of Financial Service Research, 36,203-226.
Beltratti, A. and Stulz, M. R. (2012). The Credit Crisis Around the Globe: Why Did Some Banks Perform Better? Journal of Financial Economics, 105, 1-17.
European Central Bank. (2015). Special Feature B of Financial Stability Review. May 2015, 134-145.
European Central Bank. (2016). Financial Integration in Europe. April 2015, 1-175.
Fiordelisi, F. (2009). Mergers and Acquisitions in European Banking. Palgrave Macmillan, Basingstoke, Hampshire, United Kingdom.
Piloff, S.J. & Santomero, Α.Μ. (1998). The Value Effects of Bank Mergers and Acquisitions. The paper from Bank Mergers and Acquisitions, Kluwer Academic Publishers, Dordrecht, the Netherlands, pp.59-78.
Vander Vennet, R. (1996). The Effect of Mergers and Acquisitions on the Efficiency and Profitability of EC Credit Institutions, Journal of Banking and Finance, 20, 1531-1558.
DOI: https://doi.org/10.18686/aat.v5i3.1991
Refbacks
- There are currently no refbacks.
