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Merging activity in the Greek Banking System: A Financial Accounting Perspective

Author

Listed:
  • Nikolaos Mylonidis

    (University of Ioannina)

  • Ioanna Kelnikola

    (University of Ioannina)

Abstract

The purpose of this paper is to assess the overall financial performance and value implications of recent mergers and acquisitions in the Greek banking system. The operating performance (OP) methodology is based on accounting data and observes the pre- and post-merger financial performance of banks. The event study approach utilizes stock returns of acquiring and target banks around the announcement date of the merger to determine the presence of abnormal returns. Consistent with the international literature, OP results do not provide much evidence of performance gains resulting from bank mergers. Nevertheless, merged banks seem to outperform the group of non-merging banks. The event study approach indicates that mergers create value on a net aggregate basis.

Suggested Citation

  • Nikolaos Mylonidis & Ioanna Kelnikola, 2005. "Merging activity in the Greek Banking System: A Financial Accounting Perspective," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 3(1), pages 121-144.
    • Handle: RePEc:seb:journl:v:3:y:2005:i:1:p:121-144
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    File URL: http://www.asecu.gr/Seeje/issue04/mylonidis.pdf
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    References listed on IDEAS

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    Cited by:

    1. Subhash C. Ray & Shilpa Sethia, 2022. "Nonparametric measurement of potential gains from mergers: an additive decomposition and application to Indian bank mergers," Journal of Productivity Analysis, Springer, vol. 57(2), pages 115-130, April.
    2. Anastasios KARAMANOS & George BAKATSELOS & Roena AGOLLI, 2015. "Abnormal Stock Market Returns to Announcements of M&A Banking Deals in Greece 1996-2013," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 3(2), pages 317-338, June.
    3. Rezitis, Anthony N., 2008. "Efficiency and productivity effects of bank mergers: Evidence from the Greek banking industry," Economic Modelling, Elsevier, vol. 25(2), pages 236-254, March.
    4. Reddy, K. Srinivasa & Nangia, Vinay Kumar & Agrawal, Rajat, 2012. "Corporate mergers and financial performance: A new assessment of Indian cases," MPRA Paper 60425, University Library of Munich, Germany, revised 2013.
    5. Győrffy, Dóra, 2014. "Válság és válságkezelés Görögországban. A puha költségvetési korlát szerepe a gazdasági összeomlásban [Crisis and crisis management in Greece. The role of soft budget constraints in the economic co," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 27-52.
    6. George Mountis, 2012. "Banks’ Domestic & Cross-border M&As: Where Can They Go Wrong?," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 6(1), pages 39-67, June.
    7. Reddy, Kotapati Srinivasa & Nangia, Vinay Kumar & Agrawal, Rajat, 2013. "Indian economic-policy reforms, bank mergers, and lawful proposals: The ex-ante and ex-post ‘lookup’," Journal of Policy Modeling, Elsevier, vol. 35(4), pages 601-622.
    8. Giorgos Argitis & Stella Michopoulou, 2013. "Studies in Financial Systems No 4 Financialization and the Greek Financial System," FESSUD studies fstudy04, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    9. Halkos, George E. & Tzeremes, Nickolaos G., 2013. "Estimating the degree of operating efficiency gains from a potential bank merger and acquisition: A DEA bootstrapped approach," Journal of Banking & Finance, Elsevier, vol. 37(5), pages 1658-1668.

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    More about this item

    Keywords

    Banks; M&As; Operating Performance; Event Study;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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