Post-acquisition performance of European cross-border bank M&amp;As

Drymbetas, Evangelos; Kyriazopoulos, George

doi:10.1504/ijmef.2014.067721

Cited by 4 publications

(2 citation statements)

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“…Return on Equity (ROE) is a performance ratio which describes the target company and it is calculated for the year before the acquisition took place. As it reflects the efficiency with which the capital of the target was used, consistent with other studies [71][72][73], we considered it a reliable measure of performance for the acquired company. In some cases, the ratio could be negative, which reflects the inefficiency of the target company in using the capital.…”

Section: Models Proposed For Analysis and Data Sourcementioning

confidence: 71%

Rethinking the Role of M&As in Promoting Sustainable Development: Empirical Evidence Regarding the Relation Between the Audit Opinion and the Sustainable Performance of the Romanian Target Companies

et al. 2020

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External growth strategies face crucial barriers when taken into consideration for investing if the involved companies are not audited. The integrity of a company’s financial information, its control systems, and its sustainable behavior represent cornerstones when participating in mergers and acquisitions (henceforth M&As). Thus, the audit function became a must and its role increased over the years, becoming an intrinsic part of faithfully disclosing financial and nonfinancial information (sustainable reporting included). M&As are ideal when the need for rapid innovation is required, in order to maintain or develop a sustainability policy. Given the environmental issues, we analyzed a sample of 1491 target companies listed on Bucharest Stock Exchange, clustered into three categories: polluters, medium polluters, and low polluters. The study reveals that the investors’ decision to purchase a certain amount of stake in target companies is influenced by the audit opinion and the sector in which they operate, depending on their pollution status.

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Section: Models Proposed For Analysis and Data Sourcementioning

confidence: 71%

Rethinking the Role of M&As in Promoting Sustainable Development: Empirical Evidence Regarding the Relation Between the Audit Opinion and the Sustainable Performance of the Romanian Target Companies

et al. 2020

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“…In the US pharmaceutical industry, Hassan et al (2007) also discovered short-term and long-term abnormal returns as well as efficiency effect following the acquisitions. In the cases of the European banking industry, Hagendorff and Keasey (2009) agreed that the banks experience efficiency by costcutting on labour costs and lending, and Drymbetas and Kyriazopoulos (2014) found that acquisition benefits acquiring banks in the long-run from the synergetic gains. In the high emerging economy of Malaysia, Rahman and Limmack (2004) found that operating performance improved as a result of both increases in return on sales and asset turnover.…”

Section: Figure 1 Number Of Merger and Acquisition In Indonesiamentioning

confidence: 99%

The aftermaths of acquisition in Indonesia

Syukur

Bungkilo

2020

IJMEF

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Indonesia is entering a new phase of the business competition after the launching of the Government Regulations No. 57 of 2010 about Mergers and Acquisition. A drastic inclination in numbers of acquisition deals indicates that the acquisition is a technique to show power and dignity yet might result in losing focus on improving the operating performance. Therefore, this paper aims to examine the post-acquisition operating performance of acquirer companies. Their financial performances are reflected by financial ratios which are calculated based on the accounting information from the financial statements. Data are gathered from one year to three years prior and following acquisition years and compared the significance using the Wilcoxon signed-rank test. The total population is 322 acquisition transactions. The results show that asset efficiency, the level of debt, and profitability worsen after the acquisition deals, whereas liquidity and stock price are not impacted.

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Mergers and Acquisitions in the Banking Sector: A Systematic Literature Review

Chakraborty,

Das

2024

Vision: The Journal of Business Perspective

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Mergers and acquisitions (M&A) have developed into a powerful strategic tool for consolidating banks to boost their capital bases, grow their businesses and bring about financial stability. Since the 1990s, the number of M&As has dramatically increased around the globe. This study attempts to provide a systematic review of recent M&A literature that has examined the different themes of M&As and their impact on the performance of the banking sector with an emphasis on 2013–2023. The objective of the study is to identify the important research gaps and provide direction for future research. Thus, it shows the past and recent status of M&A literature worldwide. The review has identified different themes of M&As, which include financial and operating performance, integration of technology, geographic strategies, corporate governance, cross-border M&As, size of banks, shareholders’ return, risk and loan quality, expertize and ownership. The findings indicate that research on M&As from the financial and operating performance perspective provides inconclusive results. Recently, research on cross-border M&As and integration of technology has been increasing as it provides a competitive edge to the acquirer. Results also suggest that the market considers the merger news positively for target banks, and geographic diversification and hiring financial experts in M&As improve the performance of the banks.

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Post-acquisition performance of European cross-border bank M&As

Cited by 4 publications

References 0 publications

Rethinking the Role of M&As in Promoting Sustainable Development: Empirical Evidence Regarding the Relation Between the Audit Opinion and the Sustainable Performance of the Romanian Target Companies

Rethinking the Role of M&As in Promoting Sustainable Development: Empirical Evidence Regarding the Relation Between the Audit Opinion and the Sustainable Performance of the Romanian Target Companies

The aftermaths of acquisition in Indonesia

Mergers and Acquisitions in the Banking Sector: A Systematic Literature Review

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