EFFICIENCY FROM MERGERSAND ACQUISITIONS IN THE BANKING SECTOR

Stefan Kutsarov ()
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Stefan Kutsarov: University of Economics – Varna, Bulgaria

Economic Science, education and the real economy: Development and interactions in the digital age, 2020, issue 1, 320-333

Abstract: Mergers and acquisitions (M&A) of banks are leaded by different strategies. The main motives for changes in the banks` scale are growth, synergy, and reduction of the level of competition. The main objective of this report is to investigate banking performance before and after consolidations in the sector and to conclude, whether banks are becoming more efficient after mergers or not. For evaluating thebanks efficient are observed indicators as ROA, ROE, and NIM in the period before and after M&A in the Bulgarian banking sector. The results show an increase in the efficiency of the large banks in the years after the mergers and decrease for the medium and small banks. From the summarized data can be concluded that the efficiency of the banks in Bulgaria after the merger and acquisition processes is different for various groups of banks. The empirical data partly confirms the hypothesis that banks in Bulgaria are more efficient after mergers and acquisitions and partly rejects it.

Keywords: banks; merges and acquisitions; efficiency; concentration (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:vrn:cfdide:y:2020:i:1:p:320-333

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