Determinants of premiums paid in European banking mergers and acquisitions
AbstractThis study is aimed at analysing the determinants of premiums paid in European banking mergers and acquisitions (M&A). This analysis will highlight the reasons for the wave of bank M&A during the 1990s. The empirical study analyses a sample of 81 European banking M&A from 1994 to 2000. The results show that there are different variables that make the target bank attractive to the acquirer, such as the percentage of equity, the percentage of loans and financial profitability. However, geographical and product diversification have not been considered by the acquirers as a reason to pay higher premiums.
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Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Int. J. of Banking, Accounting and Finance.
Volume (Year): 1 (2009)
Issue (Month): 4 ()
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Web page: http://www.inderscience.com/browse/index.php?journalID=277
premiums; Europe; banking; mergers and acquisitions; M&A; percentage of equity; percentage of loans; financial profitability; geographical diversification; product diversification.;
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- Jens Hagendorff & Ignacio Hernando & María J. Nieto & Larry D. Wall, 2010.
"What do premiums paid for bank M&As reflect? The case of the European Union,"
Banco de Espaï¿½a Working Papers, Banco de Espaï¿½a
1011, Banco de Espa�a.
- Hagendorff, Jens & Hernando, Ignacio & Nieto, Maria J. & Wall, Larry D., 2012. "What do premiums paid for bank M&As reflect? The case of the European Union," Journal of Banking & Finance, Elsevier, Elsevier, vol. 36(3), pages 749-759.
- Jens Hagendorff & Ignacio Hernando & Maria J. Nieto & Larry D. Wall, 2010. "What do premiums paid for bank M&As reflect? the case of the European Union," Working Paper, Federal Reserve Bank of Atlanta 2010-05, Federal Reserve Bank of Atlanta.
- Phil Molyneux & Klaus Schaeck & Tim Zhou, 2011. "Too Systemically Important to Fail in Banking," Working Papers 11011, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
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