Determinants of mergers and acquisitions among Finnish cooperative and savings banks

Huhtilainen, Matias; Saastamoinen, Jani; Suhonen, Niko

doi:10.1057/s41261-021-00170-4

Cited by 6 publications

(3 citation statements)

References 52 publications

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“…It could be because large sized companies' acquisitions are often seen as associated with managerialism and the fear of overpaying to the targets. Similar results among Finnish cooperative and saving banks were found (18).A mixed impact of the size of firms on the M&A behavior of firms was also found (36). Acquirer firms with higher tendency of R&D required in the fields of technological innovations tend to create value after the M & A deal.…”

Section: A) Acquirer Firm Characteristicssupporting

confidence: 73%

Determinants of a Cross Border Merger and Acquisition Decision: A Literature Review

Chugh¹,

Goel²

2022

ECS Trans.

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This paper aims to explore, consolidate, and comprehend the determinants that impact a cross border merger and acquisition decision. We mainly research past studies performed in the last decade that have identified several factors affecting the merger decision. By integrating the research findings from prior research, we propose developing a clear understanding of the factors that determine a merger decision. Many factors like characteristics of the CEO of the target and the acquiring company have also been summarized in this paper, which have not been consolidated by previous studies. Studying the market and economic conditions of host and home countries can provide an insight into the investment decision. This can apprise policy makers, investors, and stakeholders to work on policies and regulations that would boost inward and outward deals.

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Section: A) Acquirer Firm Characteristicssupporting

confidence: 73%

Determinants of a Cross Border Merger and Acquisition Decision: A Literature Review

Chugh¹,

Goel²

2022

ECS Trans.

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“…This notion is supported by a study that evaluates the determinants of mergers and acquisitions among Finnish cooperative and savings banks (Huhtilainen et al 2022). Though the sample mixes two types of regional banks, the result is similar.…”

Section: Literature Findingsmentioning

confidence: 88%

Bank Profitability and Mergers in the German Cooperative Banking Sector

Reichel¹

2023

Journal of Applied Finance &Amp; Banking

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This paper evaluates bank performance as a determinant of mergers in the German cooperative banking sector. Based on annual time series data since 1990, a bivariate Vector Error Correction (VEC) model is specified and estimated. The results identify return on equity (ROE) as a driver of mergers. The higher ROE, the higher the merger intensity, defined as the ratio of mergers by the number of last years’ banks. A reverse causality cannot be found as mergers do not significantly affect ROE. The results confirm some literature findings that were obtained from cross-section data. Our findings do not confirm the hypothesis that mergers are induced by worse economic performance. JEL classification numbers: G21, G34, L25, P13. Keywords: Bank mergers, cooperative banks, bank profitability, VEC model.

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“…Feldman and Hernandez [29] classified three types of cooperation arising from the synergistic combination of an acquirer and a target: relational (contractual partnership with external parties), network (direct and indirect ties between collaborationist firms), and non-market (arise from external institutional relations). Huhtilainen et al [30] reviewed the prerequisites and conditions for an M&A transaction. It seems that these transactions require a competitive environment with a corporate governance system to implement the transaction mechanism.…”

Section: Literature Reviewmentioning

confidence: 99%

Typology of Key Mergers and Acquisitions Strategies in the Process of Becoming a Market Leader

Hajiyev,

Karimova,

Bozhko

et al. 2024

IJSDP

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Today, businesses are actively optimizing their financial structures, which places new demands on investors and managers. These professionals must execute transactions while considering the specific characteristics of the target market. This study's aim is to develop a typology of key strategies for cross-border mergers and acquisitions (M&As), which are common in today's competitive financial market environment. It relies on the main indicators of foreign direct investment (FDI) to monitor M&A activity in both developed and developing economies. By employing this strategy, the study was able to assess the competitive state of financial markets and provide a basis for managerial investment decisions. Using analytical methods, as well as micro-and macroeconomic approaches, the study analyzed the M&A process in the context of modern business practices. It then constructed a universal typology of key strategies based on the findings. The study highlights the importance of FDI inflows in M&As for driving growth, facilitating technology transfer, and promoting market development. This is particularly relevant in light of the pandemic and the distinctions between developed and developing markets. The practical value of the proposed typology is that it considers global policy priorities and the dynamic capabilities of national economies, offering a universal approach to investment. The results suggest that successful M&As, with an appropriate choice of strategies, lead to a robust economy. Further, the study improves our knowledge of global financial markets and business strategies, enhancing professional engagement with investment and capital management. The research contributes to our understanding of the conceptual structure of M&As within the broader context of global politics and financial integration.

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Determinants of mergers and acquisitions among Finnish cooperative and savings banks

Cited by 6 publications

References 52 publications

Determinants of a Cross Border Merger and Acquisition Decision: A Literature Review

Determinants of a Cross Border Merger and Acquisition Decision: A Literature Review

Bank Profitability and Mergers in the German Cooperative Banking Sector

Typology of Key Mergers and Acquisitions Strategies in the Process of Becoming a Market Leader

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