In this study Mergers and Acquisitions (M&As) and business performance of banks in Greece are examined through an accounting approach. Using accounting data (financial ratios), the post-merger performance of a sample of Greek banks, listed on the Athens Stock Exchange that executed at least one merger or acquisition in the four-year-period from 2004 to 2007, is investigated. For the purpose of the study, a set of nineteen ratios is employed, in order to measure banks’ operating performance and to compare pre- and post-merger performance for three, two and one year before and after the M&A. The results revealed that M&As had a positive impact on the post-merger performance of merger-involved firms, except of dividend policy, which had to be moderate and conservative, because of the global financial crisis. The results showed that the effect of M&As on sample’s business performance, is not direct, but it becomes obvious during the next two years. Last, the number of ratios, which are statistically and significantly changed, is bigger as the control interval widens and the common ratios have an identical variation.
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