The Effects of Cross-Border Bank Mergers and Acquisitions on the Productivity of Credit Institutions

The purpose of the current research is to study bank mergers and acquisitions (MA) and to see whether they have implications on the productivity of the target banks, and also for the bidder bank. The aim of this paper is to see if, during 2002-2008 period, three banks from the European banking syste...

Full description

Saved in:
Bibliographic Details
Published inCross-Cultural management journal Vol. XVI; no. 1; pp. 157 - 167
Main Authors Popovici, Andreea, Turliuc , Dragos Gabriel
Format Journal Article
LanguageEnglish
Published Iași Fundatia Română pentru Inteligenta Afacerii 01.01.2014
Romanian Foundation for Business Intelligence
Subjects
Bank acquisitions & mergers
banking
Banking industry
Cross border transactions
Cross cultural management
Economy
efficiency
M-A
Productivity
Austria
Romania
Slovakia
Productivity
MA
Performance
Efficiency
Banking
Online AccessGet full text

Cover

More Information
Summary:The purpose of the current research is to study bank mergers and acquisitions (MA) and to see whether they have implications on the productivity of the target banks, and also for the bidder bank. The aim of this paper is to see if, during 2002-2008 period, three banks from the European banking system, Banca Comerciala Romana from Romania, Slovenská sporiteľňa from Slovakia and Erste Bank Group from Austria improved their productivity due to the fact that all of them were involved in a process of cross-border merger or acquisitions, even if the bank is the purchaser or the target. To reach our goal, we used DEA method, by estimating the productivity achieved by these three banks during the period pre-MA, post MA, but we also estimated the productivity for entire period of seven years. Using Malquist DEA method, we show that, on average, the merger or acquisition in which a bank was involved improved the Total Factor Productivity of all analyzed banks.
ISSN:2286-0452
2286-0452