Causal effect of mergers and acquisitions on EU bank productivity

Aljadani, Abdussalam; Toumi, Hassen

doi:10.1186/s40008-019-0176-9

Cited by 8 publications

(6 citation statements)

References 36 publications

(29 reference statements)

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“…Revenue synergies also derive from a better combination of production factors which is mainly typical for economics with higher economic growth and volume of GDP. Finally, Aljadani and Toumi (2019) confirmed that the deregulation process in the banking industry, which has occurred mainly in most developed countries in the European Union, with the subsequent increase in the level of competition, forced banking entities to react to a new competitive scenario. Mergers and acquisitions were a frequent response in many developed European countries with higher volumes of GDP, and good management of the integration process and the consolidating banks clearly contributed to the success of mergers and acquisitions.…”

Section: Entrepreneurship and Sustainability Issuesmentioning

confidence: 66%

“…Mergers and acquisition helps the bank not only to get new brand name, new structures, product offerings but additionally give opportunities to cross sell the new accounts acquired (Subhashree and Kannappan, 2018;Gavurova et al 2017a,b). Specifically, several authors devoted to research in the framework of M&A in the banking sector, such as Teplý et al (2010); Ayadi and Arnaboldi (2008); Aljadani and Toumi (2019); Micu and Micu (2016), etc.…”

Section: Introduction and Theoretical Frameworkmentioning

confidence: 99%

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The impact of GDP on M&A volume in the European area in the context of the consolidation of the banking market

Vozárová¹,

Kosikova²,

Hečková³

et al. 2022

JESI

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The banking sector of any nation is its key driver because the performance of the financial sector plays a vital role in the development of any economy. The European banking sector has gone through a process of rapid changes during the past three decades. The established trend of liberalization and deregulation resulted in a wave of massive consolidation, which fundamentally changed the environment in which banks did business. The main purpose of this paper is to evaluate relationships and, above all, quantify the impact of GDP on the volume of cross-border mergers and acquisitions in the banking sector for the period 2004 -2021 in selected countries of the European Area by applying three panel regression methods. From the values shown, it follows that the percentage growth of GDP has a significant effect on the percentage growth of the volume of cross-border mergers and acquisitions in the banking sector and thus was the established hypothesis confirmed. The results confirmed that 1% growth in the economy will cause a 32% increase in the volume of crossborder mergers and acquisitions in the European Area.

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Section: Entrepreneurship and Sustainability Issuesmentioning

confidence: 66%

Section: Introduction and Theoretical Frameworkmentioning

confidence: 99%

The impact of GDP on M&A volume in the European area in the context of the consolidation of the banking market

Vozárová¹,

Kosikova²,

Hečková³

et al. 2022

JESI

View full text Add to dashboard Cite

show abstract

“…Moksliniai tyrimai rodo (Smirnova, 2014;Li, 2016;Cortés et al, 2017;Aljadani & Toumi, 2019;Ahmed, 2020), kad susiliejimų ir įsigijimų priežastys yra įvairios; todėl tyrimuose paprastai randamas ne vienas, o keli įvykusio susijungimo motyvai ir priežastys. Bankiniame sektoriuje vykdomi susiliejimų ir įsigijimų sandoriai dažnai yra laikomi galimybe sumažinti bankinio sektoriaus pajėgumo perteklių, menką pelningumą ir padidinti bankų efektyvumą.…”

Section: Susiliejimų Ir įSigijimų Sandorių Sudarymo Priežastys Bankin...unclassified

Consolidation Processes in the Banking Sector

Tereškinaitė,

Vasiliauskaitė

2023

Science - Future of Lithuania

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The process of globalization in the banking sector has been an integral part of international economic and financial relations over the last few decades and has been growing rapidly ever since. Globalization offers opportunities for various integration processes in the regions, one of which is the consolidation process. Mergers and acquisitions banking is one of the means for banks to consolidate their processes, to manage their resources more efficiently, to gain a more competitive advantage and increase their profits by entering foreign capital markets. The ongoing consolidation processes in the banking sector are affecting economic growth and stability, and with the constant changes of the global economic climate, the banking sector is adapting, hence it is important to assess the factors behind the consolidation process and identify further developments in bank consolidation. In the article the following tasks were to be accomplished: 1) based on the analysis of the scientific literature, to identify the factors and reasons that promote the consolidation process, the execution of mergers and acquisitions in a global environment; 2) to perform a comparative analysis of the ratio of the share price and the value of tangible assets of banks of different regions engaged in mergers and acquisitions; 3) after evaluating the results of the comparative analysis, indicate further directions for mergers and acquisitions in different regions. After accomplishing the specified tasks, the most important factors were identified, which were attributed to internal and external motives, and the possibilities for consolidation processes in the banking regions were presented. The following research methods are used in the article – analysis of scientific literature, comparative analysis, analysis and evaluation of financial statements.

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“…They even indicate that "small regional banks would gain efficiency if they merge with neighbouring banks, whereas larger banks would gain efficiency when merging with distant banks" (Halkos et al, 2016, p. 47). Aljadani & Toumi (2019) have investigated the causal effect of mergers and acquisitions (M&A) on bank productivity in 23 European Union countries over the period 1990-2013. Their sample consists of 156 commercial banks, of which 60 entities have acquired at least one other entity.…”

Section: Literature Reviewmentioning

confidence: 99%

Do mergers and acquisitions improve bank efficiency? Evidence from North Macedonia

Čiković

Lozić

Guzovski

2022

Journal of International Studies

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This article focuses on the efficiency of commercial banks in North Macedonia in the period from 2007 to 2020. The main goal is to assess the relative efficiency of the banking sector as a whole, and more importantly, to evaluate and analyse the impact of mergers and acquisition (M&A) transactions on banks’ efficiency. For this reason, the leading nonparametric methodology Data Envelopment Analysis (DEA) has been employed, i.e., the window DEA model with two input and two output variables on a sample of 13 commercial banks. Based on balanced panel data from the banking sector of North Macedonia, the obtained results show a constant fall of efficiency of the whole banking sector, from 83.33% in 2007 to 70.06% in 2011 and 66.36% in 2020. The results of the M&A transactions case study analysis show that, in general, M&A transactions decrease banks' efficiency, i.e., they do not result in an efficiency increase. The contribution of the study is that it comprises the first study analysing the effects of banks' M&A on bank efficiency in the region of South-Eastern Europe with the application of DEA and thus, it provides valuable information for investors, bank management, M&A analysts, academic members and regulatory bodies.

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Causal effect of mergers and acquisitions on EU bank productivity

Cited by 8 publications

References 36 publications

The impact of GDP on M&A volume in the European area in the context of the consolidation of the banking market

The impact of GDP on M&A volume in the European area in the context of the consolidation of the banking market

Consolidation Processes in the Banking Sector

Do mergers and acquisitions improve bank efficiency? Evidence from North Macedonia

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