Leledakis, George N. and Pyrgiotakis, Emmanouil G. (2019): Market concentration and bank M&As: Evidence from the European sovereign debt crisis.
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Abstract
Using a sample of 312 bank M&As announced between 1998 and 2016 in the EU-27 countries, this paper investigates the impact of market concentration and the European sovereign debt crisis on the way investors react to these corporate events. In Western European countries, we find results which contrast the conventional wisdom that acquiring banks lose around the merger announcement date. In fact, since 2009, acquiring banks shareholders gain approximately $34 million around the announcement, a $56 million improvement compared to the pre-crisis period. These documented shareholder gains are also accompanied by significant improvements in post-merger profitability. Markedly, we link this superior performance of the post-2008 acquirers with the degree of market concentration in the Western European region. Finally, results for the Eastern European countries indicate that the crisis did not have a significant impact on the quality of bank M&As in the region.
Item Type: | MPRA Paper |
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Original Title: | Market concentration and bank M&As: Evidence from the European sovereign debt crisis |
English Title: | Market concentration and bank M&As: Evidence from the European sovereign debt crisis |
Language: | English |
Keywords: | European sovereign debt crisis; bank mergers and acquisitions; market concentration; event study |
Subjects: | G - Financial Economics > G0 - General > G01 - Financial Crises G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency ; Event Studies ; Insider Trading G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance |
Item ID: | 95739 |
Depositing User: | Dr George Leledakis |
Date Deposited: | 28 Aug 2019 09:22 |
Last Modified: | 26 Sep 2019 12:51 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/95739 |