Beccalli, Elena and Frantz, Pascal 
ORCID: 0009-0005-3394-0589
(2009)
M&A operations and performance in banking.
Journal of Financial Services Research, 36 (2-3).
pp. 203-226.
ISSN 0920-8550
Abstract
This paper investigates whether M&A operations influence the performance of banks. Using a sample of 714 deals involving EU acquirers and targets located throughout the world over the period 1991-2005, we investigate whether M&A operations are associated with improved performance (using both standard accounting ratios and cost and alternative profit X-efficiency measures). Despite the extensive and ongoing consolidation process in the banking industry, we find that M&A operations are associated with a slight deterioration in return on equity, cash flow return and profit efficiency and with a marked improvement in cost efficiency. Hence, the improvements in cost efficiency appear to be transferred to bank clients. These changes in performance are directly attributable to the M&A operations, and would not have occurred in their absence. Moreover, these changes exhibit a particularly negative trend for cross-border deals to testify the importance of geographical relatedness in order to achieve better post-M&A performance. The environmental and bank-characteristics that make a deal successful or unsuccessful are finally identified.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.springerlink.com/content/102934/ |
| Additional Information: | © 2009 Springer |
| Divisions: | Accounting |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor |
| Date Deposited: | 28 Nov 2009 14:52 |
| Last Modified: | 11 Dec 2024 23:29 |
| URI: | http://eprints.lse.ac.uk/id/eprint/25852 |
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