The patterns of cross-border bank mergers and shareholdings in OECD countries

Focarelli, Dario; Pozzolo, Alberto Franco

doi:10.1016/s0378-4266(01)00192-3

Cited by 233 publications

(121 citation statements)

References 27 publications

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“…BCASSET has a positive coefficient, indicating that banks from more concentrated banking sectors tend to go abroad. The results are different from Focarelli and Pozzolo (2001) in that they found both the degree of market concentration and the share of state-owned bank assets are not significantly related to banks' acquiring decisions. This is interpreted as sample difference.…”

Section: Cross-border Bank Mergers and Acquisitionscontrasting

confidence: 87%

“…This variable is as expected, positively related to acquiring probability, indicating that banks from more globalized countries are more likely to become cross-border acquirers. The stock market capitalization ratio is also included and found negatively related to acquiring probability, which is consistent with Focarelli and Pozzolo (2001). They find that banks are seeking additional profit opportunities beyond those offered by traditional bank activities at home.…”

Section: Cross-border Bank Mergers and Acquisitionssupporting

confidence: 71%

“…According to Focarelli and Pozzolo (2001), stringent bank regulatory restrictions lead to fewer cross-border bank mergers and acquisitions. Berger (2007) points out major regulatory barriers against international banking, including explicit barriers like regulations limiting foreign bank entry or expansion and implicit barriers such as inconsistency in regulatory practices and legal systems between countries.…”

Section: Testable Hypothesismentioning

confidence: 99%

“…This result might also imply that seeking profits from traditional bank activities is the main motivation for acquiring banks' cross-border takeovers. As Focarelli and Pozzolo (2001) mentioned, banks do not need to be present in foreign countries in order to expand their innovative business abroad. Innovative bank services require less face-to-face contact with customers and usually are exported cross-border directly.…”

Section: Push Factorsmentioning

confidence: 99%

“…This is interpreted as sample difference. Focarelli and Pozzolo (2001) based their research on Organization for Economic Cooperation and Development (OECD) countries, most of which are developed nations.…”

Section: Cross-border Bank Mergers and Acquisitionsmentioning

confidence: 99%

See 4 more Smart Citations

Cross-Border Bank Mergers and Acquisitions: What Factors Pull and Push Banks Together?

Lin

Barth

Jahera

et al. 2013

Rev. Pac. Basin Finan. Mark. Pol.

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This paper evaluates factors that encourage or impede cross-border mergers and acquisitions in banking. The effects of bank specific features, as well as bank regulatory factors, from both target and acquiring banks' perspectives, are estimated. Three comprehensive databases are combined to provide a unique dataset to study cross-border merger and acquisition activities of banks. Banking sector regulatory variables included make this study among the first to empirically and comprehensively analyze the interrelationship between bank regulation and cross-border bank mergers and acquisitions. The results indicate that both bank characteristics and country specific characteristics are important determinants of banks' cross-border merger and acquisition activities.

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Section: Cross-border Bank Mergers and Acquisitionscontrasting

confidence: 87%

Section: Cross-border Bank Mergers and Acquisitionssupporting

confidence: 71%

Section: Testable Hypothesismentioning

confidence: 99%

Section: Push Factorsmentioning

confidence: 99%

Section: Cross-border Bank Mergers and Acquisitionsmentioning

confidence: 99%

See 3 more Smart Citations

Cross-Border Bank Mergers and Acquisitions: What Factors Pull and Push Banks Together?

Lin

Barth

Jahera

et al. 2013

Rev. Pac. Basin Finan. Mark. Pol.

View full text Add to dashboard Cite

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Bibliography

2017

Location Strategies and Value Creation of International Mergers and Acquisitions

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How does regulation affect the organizational form of foreign banks' presence in developing versus developed countries?

2020

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Using a unique hand-collected dataset of 1,251 European Union banks and 20,850 foreign affiliates hosted in 154 countries, this paper investigates how both host country and home country regulations affect the decision on where and how to go abroad in developing countries as opposed to developed countries. We find that banks prefer high-income countries with numerous activity restrictions and weaker supervision but less developed countries with less restrictions and stronger supervision. In all cases, they avoid locations with stronger capital regulation than at home. Regarding the choice of foreign organizational form (branches versus subsidiaries), banks rather operate subsidiaries in both high and middle-income countries with stringent entry requirements but prefer branches in developing countries with stringent capital requirements and greater supervisory power. Our findings contribute to the literature examining bank internationalization and have several policy implications for regulatory reforms in developing and developed countries.

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The patterns of cross-border bank mergers and shareholdings in OECD countries

Cited by 233 publications

References 27 publications

Cross-Border Bank Mergers and Acquisitions: What Factors Pull and Push Banks Together?

Cross-Border Bank Mergers and Acquisitions: What Factors Pull and Push Banks Together?

Bibliography

How does regulation affect the organizational form of foreign banks' presence in developing versus developed countries?

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