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Dynamic Effects of Mergers and Acquisitions on the Performance of Commercial European Banks

Author

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  • Toumi Hassen

    (University of Economics and Management of Sfax)

  • Issaoui Fakhri

    (Elmajmaa University)

  • Ammouri Bilel

    (University of Tunis (ESSEC Tunis))

  • Touili Wassim

    (Ecole Supérieure de Commerce de Tunis ESCT)

  • Hamdi Faouzi

    (Elmajmaa University)

Abstract

In this paper, we have shown that the operations of Mergers and Acquisitions (M&A) are necessary for the growth of banks and for passing to increase the scale of returns. The empirical results have confirmed this affirmation. The time has had a negative effect on efficiency while the dummy M&A variable has had positive effects. The composite mergers-time variable has had positive effects, which means that in the long run the M&A achieve all their aims. Our study, therefore, is the first to analyze the dynamic effects of mergers on bank performance derived from both the acquisition of another bank and time, using panel data methodology, for the period 2005–2013, in a sample of 60 acquire banks, in 17 European countries.

Suggested Citation

  • Toumi Hassen & Issaoui Fakhri & Ammouri Bilel & Touili Wassim & Hamdi Faouzi, 2018. "Dynamic Effects of Mergers and Acquisitions on the Performance of Commercial European Banks," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(3), pages 1032-1048, September.
    • Handle: RePEc:spr:jknowl:v:9:y:2018:i:3:d:10.1007_s13132-016-0389-1
    DOI: 10.1007/s13132-016-0389-1
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    2. Rim Ben Abdesslem & Halim Dabbou & Mohamed Imen Gallali, 2023. "The Impact of Market Concentration on Bank Risk-Taking: Evidence from a Panel Threshold Model," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 4170-4194, December.

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    More about this item

    Keywords

    Performance; Mergers; Dynamic effects; Panel Data;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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