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The impact of GDP on M&A volume in the European area in the context of the consolidation of the banking market

Author

Listed:
  • Ivana Kravcakova Vozarova

    (University of Prešov, Slovakia)

  • Martina Kosikova

    (University of Prešov, Slovakia)

  • Jaroslava Heckova

    (University of Prešov, Slovakia)

  • Alexandra Chapcakova

    (University of Prešov, Slovakia)

  • Maria Fulajtarova

    (Technical University of Košice, Slovakia)

Abstract

The banking sector of any nation is its key driver because the performance of the financial sector plays a vital role in the development of any economy. The European banking sector has gone through a process of rapid changes during the past three decades. The established trend of liberalization and deregulation resulted in a wave of massive consolidation, which fundamentally changed the environment in which banks did business. The main purpose of this paper is to evaluate relationships and, above all, quantify the impact of GDP on the volume of cross-border mergers and acquisitions in the banking sector for the period 2004 – 2021 in selected countries of the European Area by applying three panel regression methods. From the values shown, it follows that the percentage growth of GDP has a significant effect on the percentage growth of the volume of cross-border mergers and acquisitions in the banking sector and thus was the established hypothesis confirmed. The results confirmed that 1% growth in the economy will cause a 32% increase in the volume of cross-border mergers and acquisitions in the European Area.

Suggested Citation

  • Ivana Kravcakova Vozarova & Martina Kosikova & Jaroslava Heckova & Alexandra Chapcakova & Maria Fulajtarova, 2022. "The impact of GDP on M&A volume in the European area in the context of the consolidation of the banking market," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 10(2), pages 207-216, December.
    • Handle: RePEc:ssi:jouesi:v:10:y:2022:i:2:p:207-216
    DOI: 10.9770/jesi.2022.10.2(13)
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    References listed on IDEAS

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    1. Marinko Škare & Małgorzata Porada-Rochoń, 2021. "Measuring the impact of financial cycles on family firms: how to prepare for crisis?," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1111-1130, September.
    2. Ledenyov, Dimitri O. & Ledenyov, Viktor O., 2014. "Mergers and acquisitions transactions strategies in diffusion - type financial systems in highly volatile global capital markets with nonlinearities," MPRA Paper 52697, University Library of Munich, Germany.
    3. Alexandra MICU & Ion MICU, 2016. "Mergers And Acquisitions In The Banking Sector During The Financial Crisis," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 11, pages 385-392, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    cross-border merger; cross-border acquisition; gross domestic product; consolidation; banking sector; European Union;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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