Published
2024-02-02
Section
Articles
How to Cite
Performance Changes of EU Bank M&As: Key Determinants and Relationships with Banking Market Integration
Jun Luo
Zhejiang Financial College
DOI: https://doi.org/10.59429/paat.v5i3.1379
Keywords: Bank M&As; Performance Changes; 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.
References
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