The impact of GDP on M&A volume in the European area in the context of the consolidation of the banking market

Ivana Kravcakova Vozarova (), Martina Kosikova (), Jaroslava Heckova (), Alexandra Chapcakova () and Maria Fulajtarova ()
Additional contact information
Ivana Kravcakova Vozarova: University of Prešov, Slovakia
Martina Kosikova: University of Prešov, Slovakia
Jaroslava Heckova: University of Prešov, Slovakia
Alexandra Chapcakova: University of Prešov, Slovakia
Maria Fulajtarova: Technical University of Košice, Slovakia

Entrepreneurship and Sustainability Issues, 2022, vol. 10, issue 2, 207-216

Abstract: The banking sector of any nation is its key driver because the performance of the financial sector plays a vital role in the development of any economy. The European banking sector has gone through a process of rapid changes during the past three decades. The established trend of liberalization and deregulation resulted in a wave of massive consolidation, which fundamentally changed the environment in which banks did business. The main purpose of this paper is to evaluate relationships and, above all, quantify the impact of GDP on the volume of cross-border mergers and acquisitions in the banking sector for the period 2004 – 2021 in selected countries of the European Area by applying three panel regression methods. From the values shown, it follows that the percentage growth of GDP has a significant effect on the percentage growth of the volume of cross-border mergers and acquisitions in the banking sector and thus was the established hypothesis confirmed. The results confirmed that 1% growth in the economy will cause a 32% increase in the volume of cross-border mergers and acquisitions in the European Area.

Keywords: cross-border merger; cross-border acquisition; gross domestic product; consolidation; banking sector; European Union (search for similar items in EconPapers)
JEL-codes: F23 G34 O16 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://jssidoi.org/jesi/uploads/articles/38/Vozar ... e_banking_market.pdf (application/pdf)
https://jssidoi.org/jesi/article/1021 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:10:y:2022:i:2:p:207-216

DOI: 10.9770/jesi.2022.10.2(13)

Access Statistics for this article

Entrepreneurship and Sustainability Issues is currently edited by Manuela Tvaronaviciene

More articles in Entrepreneurship and Sustainability Issues from VsI Entrepreneurship and Sustainability Center
Bibliographic data for series maintained by Manuela Tvaronaviciene ().