Operating performance of European bank mergers

2009 ◽  
Vol 29 (3) ◽  
pp. 345-366 ◽  
Author(s):  
Ahmad Ismail ◽  
Ian Davidson ◽  
Regina Frank
Keyword(s):  
Operating Performance ◽  
Bank Mergers ◽  
European Bank

Do regulatory bank mergers improve operating performance?

2021 ◽  
Vol 73 ◽  
pp. 152-174
Author(s):  
Abdullah Mamun ◽  
George Tannous ◽  
Sicong Zhang
Keyword(s):  
Operating Performance ◽  
Bank Mergers ◽  
Improve Operating

Announced versus canceled bank mergers and acquisitions

2016 ◽  
Vol 17 (5) ◽  
pp. 510-544 ◽  
Author(s):  
Armin Varmaz ◽  
Jonas Laibner
Keyword(s):  
Mergers And Acquisitions ◽  
Shareholder Value ◽  
Abnormal Returns ◽  
Bank Mergers ◽  
Cross Sectional ◽  
Market Reactions ◽  
Content Type ◽  
European Bank ◽  
Long Time ◽  
Loan Losses

Purpose This paper aims to empirically analyze the success of European bank mergers and acquisitions (M&As) by an analysis of the shareholder value implications of stock market reactions to announced and canceled M&As in the period from 1999 to 2015. Design/methodology/approach The analysis of a sample of 467 announced and 54 canceled European bank M&As is conducted using event study methodology. The determinants of the shareholder value creations in M&A are observed in cross-sectional regressions. The likelihood of M&As being canceled is estimated in logit regressions. Findings The paper finds that European bank M&As have not been successful in terms of shareholder value creation for acquiring banks, whereas targets experienced significant value gains. Abnormal returns for bidders and targets exhibit the same characteristics upon the announcement of M&As that are canceled at a later date, whereas the results for transaction cancelations deviate. Targets experience negative abnormal returns at a larger size than upon the transaction announcement. The findings for bidders are striking, as they destroy shareholder value upon the transaction cancelation, also, consequently they suffer twice. In particular, banks with higher profitability, higher efficiency and lower liquidity experience negative abnormal returns around the announcement dates. Negative abnormal returns prior to the transaction announcement and provision for loan losses increase significantly the likelihood of M&A cancelation. Originality/value This paper contributes to the literature expanding existing analyses to the shareholder value implications of canceled European bank M&As in a 17-year long time period. The findings reveal the destructive characteristics of canceled bank M&As and provide innovative insights into European capital market reaction to canceled M&As.

scholarly journals The impact of European bank mergers on bidder default risk

2011 ◽  
Vol 35 (4) ◽  
pp. 902-915 ◽  
Author(s):  
Francesco Vallascas ◽  
Jens Hagendorff
Keyword(s):  
Default Risk ◽  
Bank Mergers ◽  
European Bank ◽  
The Impact

The Determinants of Target Returns in European Bank Mergers

2007 ◽  
Vol 27 (5) ◽  
pp. 617-634 ◽  
Author(s):  
Ahmad Ismail ◽  
Ian Davidson
Keyword(s):  
Bank Mergers ◽  
European Bank

Does operating performance really improve following financial institutions merger : a case of Malaysian banks

2007 ◽  
Vol 4 (1) ◽  
pp. 77
Author(s):  
Wan Mansor Wan Mahmood ◽  
Rashidah Mohamad
Keyword(s):  
Performance Measures ◽  
Financial Institutions ◽  
Operating Performance ◽  
Profit Margin ◽  
Sample Period ◽  
Bank Mergers ◽  
Loan Loss ◽  
Return On Equity ◽  
Savings And Loan ◽  
The Us

This study examines whether the recent bank mergers exercise in Malaysia create synergies reflected in corporate operating performance measures. Four accrual operatingperformance measures are used, i.e. Return on Asset (ROA), Return on Equity (ROE), Profit Margin (PM), and Earning Per Share (EPS). Using a sample of eight anchor banks for a sample period beginning 1997 through 2002, the results show that bank mergers lead to significant post merger improvements, which is consistent with the findings of Neely and Rochester (1987) who also employ accrual performance measures in their study on savings and loan institutions in the us. The findings suggest that even though the mergers are 'forced' in nature, it is able to contribute to the synergistic benefits. The gain in the post-merger operating performance is likely to be due to the provisions for loan loss, which on average is much lower during the post-merger period compared to the pre-merger period. The study also finds that there is an insignificant continuance of pre-merger performance into the post-merger period.

Size, Target Performance and European Bank Mergers and Acquisitions

2008 ◽  
Vol 23 (1) ◽  
pp. 53-64 ◽  
Author(s):  
Sergio Sanfilippo Azofra ◽  
Myriam Garcia Olalla ◽  
Begoña Torre Olmo
Keyword(s):  
Mergers And Acquisitions ◽  
Bank Mergers ◽  
European Bank ◽  
Target Performance ◽  
Size Target

scholarly journals Efficiency, Value addition and performance of US bank mergers

2016 ◽  
Vol 14 (1) ◽  
pp. 59-72
Author(s):  
Abu Naiahn Faisal Khan ◽  
Kabir Hassan ◽  
Neal Maroney ◽  
Jose Francisco Rubio
Keyword(s):  
Mergers And Acquisitions ◽  
Performance Metrics ◽  
Operating Performance ◽  
Product Diversification ◽  
Bank Mergers ◽  
Value Addition ◽  
Cost Cutting ◽  
Overall Performance ◽  
And Performance ◽  
Revenue Enhancement

There is little consensus regarding the overall performance of mergers and acquisitions in the banking industry. The goal of this paper is to investigate the change in operating performance, efficiency, and value addition of US bank mergers and acquisitions after GLBA. We extend the previous research by combining all the previous methodologies used in mergers and acquisitions studies and add a new methodology, namely Expected EVA improvement. We will test whether these performance metrics yield similar results or if the performance of mergers varies depending on the measurements. We will also examine the factors that have significant impact on changes in bank performance. Our empirical results lead to the conclusion that the industry-adjusted operating performance of merged banks increases significantly after a merger. This finding is consistent with the findings of Cornett et al. (2006).We also find that the acquirer expected EVA improvement increases significantly after a merger. Revenue enhancement opportunity appears to be more profitable if there exists more opportunity for cost cutting such as geographically focused and diversified mergers. Product diversification mergers increase the industry adjusted performance more than product focused mergers. The efficiency or profitability of targets have either a positive or no effect on acquirer performance.

Market valuation of European bank mergers

1999 ◽  
Vol 17 (5) ◽  
pp. 532-540 ◽  
Author(s):  
Alireza Tourani Rad ◽  
Luuk Van Beek
Keyword(s):  
Market Valuation ◽  
Bank Mergers ◽  
European Bank
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