Mergers and Acquisitions in European banking higher productivity or better synergy among business lines?

This paper aims at assessing the extent to which M&As in European banking sector over the period 1996-2003 result in two simultaneous catching up and convergence processes of consolidating groups. First, do the M&As significantly contribute to the consolidating banks to catch-up with the pro...

Full description

Saved in:
Bibliographic Details
Published in:Journal of productivity analysis 2013-04, Vol.39 (2), p.165-175
Main Authors: Ayadi, Rym, Boussemart, Jean-Philippe, Leleu, Hervé, Saidane, Dhafer
Format: Article
Language:English
Subjects:
2010 Conference of the EURO Working Group on Efficiency and Productivity Analysis: "Global Trends in the Efficiency and Risk Management of Financial Services"
Accounting/Auditing
Acquisitions & mergers
Bank acquisitions & mergers
Bank assets
Bank loans
Banking industry
Banks
Best practice
Convergence
Cost efficiency
Econometrics
Economic efficiency
Economic models
Economic statistics
Economic theory
Economics
Economics and Finance
Efficiency
Efficiency metrics
Humanities and Social Sciences
Input output
Microeconomics
Operations Research/Decision Theory
Productive efficiency
Productivity
Stockholders
Studies
Value creation
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper aims at assessing the extent to which M&As in European banking sector over the period 1996-2003 result in two simultaneous catching up and convergence processes of consolidating groups. First, do the M&As significantly contribute to the consolidating banks to catch-up with the productivity benchmark? Second, in terms of synergies or complementarities among business lines, is there a convergence process of output mixes among the individual banks of the M&A operations? Our sample is made up of 42 M&A transactions and 587 non-merging banks in Europe. The main conclusion is that M&A operations in the European banking industry appear to be essentially motivated by an objective of improving complementarities among lines of work from each component of M&As rather than increasing productivity at the merged banks.
ISSN:0895-562X
1573-0441
DOI:10.1007/s11123-012-0309-8