The determinants of Mergers and Acquisitions in the banking industry: A comparison between the US and the European market.
Bendoume, Petrina (2013) The determinants of Mergers and Acquisitions in the banking industry: A comparison between the US and the European market. [Dissertation (University of Nottingham only)] (Unpublished)
This study identifies the determinants of mergers and acquisitions before (2004-2007) and after the financial crisis (2008-2012) in the US and European banking industry. The study also seeks to make an empirical comparison between these two markets. Four logistics regressions are used to reach the objectives of the study. The results indicate that loan activity has an influence on bank acquisitions likelihood in the US banking market before and after the financial crisis. On the other hand size and growth are two important determinants of M&As in the European banking sector. Furthermore capitalisation has an influence on the likelihood of being acquired in the US and European market between 2004 and 2007. However, it has an insignificant effect after the economic crisis. Regarding profitability, the latter makes no material alteration to the possibility of a bank being a target in the US and European banking sector. Thus there is no evidence to support the efficient management hypothesis in both markets.
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