File(s) not publicly available
Operating Performance of European Bank Mergers
journal contribution
posted on 2023-06-08, 00:29 authored by Ahmad Ismail, Ian Davidson, Regina FrankWith very few exceptions the accepted viewpoint established by (predominantly) US research is that bank operating performance is not improved after merger. In this article we concentrate on European banks and investigate post-merger operating performance for 35 publicly listed bank mergers that were completed between 1992 and 1997. We find that industry-adjusted mean cash flow return did not significantly change after merger but stayed positive. We also find that the merger led to a significant decrease in profitability and capitalisation. Our key finding, in contrast to the US evidence, is that cost-efficiency ratios improved, although the improvement was not large enough to offset the profitability decrease. We also find that low profitability levels, conservative credit policies and good cost-efficiency status before merger are the main determinants of industry-adjusted cash flow returns and provide the source for improving these returns after merger.
History
Publication status
- Published
Journal
Service Industries JournalISSN
0264-2069Publisher
Taylor & FrancisExternal DOI
Issue
3Volume
29Page range
345-366Department affiliated with
- Business and Management Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2012-02-06Usage metrics
Categories
No categories selectedKeywords
Licence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC