Cross-Border Bank Acquisitions: Is there a Performance Effect?

Publicado en

  • Journal of Financial Services Research

Resumen

  • This paper uses a unique database that includes deal and bank balance sheet information for 220 cross-border acquisitions between 1994 and 2003 to analyze the characteristics and performance effects of international takeovers on target banks. A discrete choice estimation shows that banks are more likely to get acquired in a cross-border deal if they are large, bad performers, in a small country, and when the banking sector is concentrated. Post-acquisition performance for target banks does not improve in the first two years relative to domestically-owned financial institutions. This result is explained by a decrease in the banks' net interest margin in developed countries and an increase in overhead costs in emerging economies.

fecha de publicación

  • 2009

Líneas de investigación

  • International Banking
  • Mergers and Acquisitions
  • Performance

Página inicial

  • 169

Última página

  • 197

Volumen

  • 36

Issue

  • 2