THE EFFECTS OF CROSS-BORDER BANK MERGERS AND ACQUISITIONS ON THE PRODUCTIVITY OF CREDIT INSTITUTIONS

Andreea N. Popovici and Dragos G. Turliuc
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Andreea N. Popovici: Faculty of Economics and Business Administration, "Alexandru Ioan Cuza" University of Iasi, Romania
Dragos G. Turliuc: Faculty of Economics and Business Administration, "Alexandru Ioan Cuza" University of Iasi, Romania

CrossCultural Management Journal, 2014, issue 1, 157-167

Abstract: The purpose of the current research is to study bank mergers and acquisitions (M&A) 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, Slovenskásporiteľňa 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-M&A, post M&A, 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.

Keywords: M&A; Banking; Performance; Productivity; Efficiency (search for similar items in EconPapers)
JEL-codes: G21 G30 G34 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:cmj:journl:y:2014:i:5:popovici&turliuc

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