The effect of M&A on bank efficiency in Greece

Panayiotis Athanasoglou () and Sophocles Brissimis

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies the impact of recent mergers and acquisitions(M&As)on the cost and profit efficiency of banks in Greece. To this end, three methods have been applied:(i)analysis of developments in certain cost and profit indicators and their dispersion for bank groups according to their size;(ii)calculation of cost and profit inefficiency(relative to the best performer); and(iii)analysis of individual cases of M&As in terms of changes in bank costs and profitability relative to banks not involved in M&As. Additionally, the paper assesses the existence of economies of scale and the extent to which they are exploited through M&As. The empirical results indicate that M&As, in particular those involving small banks, had a positive effect on cost and profit efficiency and that scope exists for further improvement in efficiency. Also, M&As helped large banks to exploit economies of scale, which previously were found in small to medium- sized banks.

Keywords: Mergers and acquisitions; bank cost and profit efficiency; economies of scale (search for similar items in EconPapers)
JEL-codes: G21 G34 (search for similar items in EconPapers)
Date: 2004-01
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Citations: View citations in EconPapers (1)

Published in RePEc Economic Bulletin 22 (2004): pp. 7-31

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:16449

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