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The impact of catastrophic events of the black swan type on the mergers and acquisitions market illustrated by the banking sector

Author

Listed:
  • Krzysztof Melnarowicz

    (Szkoła Główna Handlowa w Warszawie, Kolegium Zarządzania i Finansów)

Abstract

The purpose of the publication is to identify the distinctive features of the behaviour of the merger and acquisition market in the banking sector during two catastrophic events that took place between 2020 and 2023. The study includes a literature review, an analysis of previous studies on crises and their impact on the merger and acquisition market, specifically in the banking sector (desk research), as well as an analysis of selected case studies. The article poses the following research question: “Does the merger and acquisition market in the banking sector exhibit specific characteristics during and after catastrophic events?” In order to answer this question, literature, existing research and statistical data on transactions from 2020–2022 are reviewed. Additionally, two case studies from the European and US markets are analysed. The research provides an affirmative response to the research question, and the conclusions confirming the specificity of the merger and acquisition market in the banking sector are presented in the article’s summary. The author also recommends further in-depth research on the specifics of the market for corporate control during and after catastrophic events going beyond qualitative analysis.

Suggested Citation

  • Krzysztof Melnarowicz, 2024. "The impact of catastrophic events of the black swan type on the mergers and acquisitions market illustrated by the banking sector," Bank i Kredyt, Narodowy Bank Polski, vol. 55(2), pages 201-220.
    • Handle: RePEc:nbp:nbpbik:v:55:y:2024:i:2:p:201-220
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    References listed on IDEAS

    as
    1. Anju Seth & Kean P Song & Richardson Pettit, 2000. "Synergy, Managerialism or Hubris? An Empirical Examination of Motives for Foreign Acquisitions of U.S. Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(3), pages 387-405, September.
    2. Laurence Capron & Will Mitchell, 2009. "Selection Capability: How Capability Gaps and Internal Social Frictions Affect Internal and External Strategic Renewal," Organization Science, INFORMS, vol. 20(2), pages 294-312, April.
    3. Harald Hau & Marcel Thum, 2009. "Subprime Crisis and Board (In-)Competence: Private vs. Public Banks in Germany," CESifo Working Paper Series 2640, CESifo.
    4. Agrawal, Anup & Jaffe, Jeffrey F & Mandelker, Gershon N, 1992. "The Post-merger Performance of Acquiring Firms: A Re-examination of an Anomaly," Journal of Finance, American Finance Association, vol. 47(4), pages 1605-1621, September.
    5. Chiaramonte, Laura & Dreassi, Alberto & Piserà, Stefano & Khan, Ashraf, 2023. "Mergers and acquisitions in the financial industry: A bibliometric review and future research directions," Research in International Business and Finance, Elsevier, vol. 64(C).
    6. Harald Hau & Marcel Thum, 2009. "Subprime crisis and board (in-) competence: private versus public banks in Germany [‘Corporate governance and board of directors: Performance effects of changes in board composition’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 24(60), pages 701-752.
    7. repec:oup:ecpoli:v:24:y:2009:i::p:701-752 is not listed on IDEAS
    8. Hitt, Michael A. & Harrison, Jeffrey S. & Ireland, R. Duane, 2001. "Mergers and Acquisitions: A Guide to Creating Value for Stakeholders," OUP Catalogue, Oxford University Press, number 9780195112856.
    9. Saunders, Anthony & Walter, Ingo, 1994. "Universal Banking in the United States: What Could We Gain? What Could We Lose?," OUP Catalogue, Oxford University Press, number 9780195080698.
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    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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