What are the Determinants of Mergers and Acquisitions in Banking?

Elena Beccalli and Pascal Frantz

Chapter 10 in New Issues in Financial Institutions Management, 2010, pp 171-199 from Palgrave Macmillan

Abstract: Abstract This study investigates the determinants of the likelihood of being involved in mergers and acquisitions (M&As) in banking. Given that the M&A market has been especially active in banking, the main aim here is to test whether it is possible to predict ex ante potential acquirers and targets on the basis of a set of bank specific and regulatory/institutional characteristics. We suggest that significant implications follow. Professional investors in the secondary markets would have at their disposal a method of identifying firms more likely to be targets and acquirers, and hence to select the stocks to be included in their portfolios. Managers in the banking industry would have a way to identify the probability of running into an M&A operation, and therefore to put in place mechanisms to favour or to block it.

Keywords: Total Asset; Banking Industry; Economic Freedom; Free Cash Flow; Profit Efficiency (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-0-230-29915-3_11

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DOI: 10.1057/9780230299153_11

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