EconPapers    
Economics at your fingertips  
 

Post-merger Bank Efficiency and Stock Market Reaction: the Case of the US versus Europe

Dimitris K. Chronopoulos, Claudia Girardone and John C. Nankervis

Chapter 7 in New Issues in Financial Institutions Management, 2010, pp 122-135 from Palgrave Macmillan

Abstract: Abstract The past two decades have been characterized by a wave of bank mergers that have reshaped both the US and the European financial systems. Specifically, the number of banks fell by almost 40 per cent in Europe and by over 45 per cent in the US between 1985 and 2003. The possibility that these bank mergers will yield efficiency gains for the consolidated banks has long been a subject of debate; yet empirical evidence documented in the literature up to 2000 does not provide an unambiguous answer to this question (see Amel et al. 2004). The consensus view from more recent studies is that bank mergers and acquisitions (M&As) can improve efficiency (see DeYoung et al. 2009). However, a probably more important issue is whether or not stock markets can accurately forecast these efficiency gains upon the announcement of an M&A operation.

Keywords: Data Envelopment Analysis; Abnormal Return; Event Window; European Bank; Profit Efficiency (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:pmschp:978-0-230-29915-3_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230299153

DOI: 10.1057/9780230299153_8

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-31
Handle: RePEc:pal:pmschp:978-0-230-29915-3_8