IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v48y2014i2p363-381.html

Why do Acquiring Banks in Mergers Concentrate in Well-Developed Areas? Regional Development and Mergers and Acquisitions (M&As) in Banking

Author

Listed:
  • Luca V. A. Colombo
  • Gilberto Turati

Abstract

Colombo L. V. A. and Turati G. Why do acquiring banks in mergers concentrate in well-developed areas? Regional development and mergers and acquisitions (M&As) in banking, Regional Studies . The paper focuses on all mergers and acquisitions (M&As) transactions of regional relevance that occurred in the Italian banking sector between 1995 and 2006. A strong direct effect of regional economic and social characteristics on the concentration of the banking industry in Italy is found, as well as on the agglomeration of acquiring banks in well-developed regions. This effect survives to a number of robustness checks, including controls for banks' profitability and efficiency, and for their institutional characteristics, indicated by the banking literature as the key factors driving concentration in banking. Possible theoretical explanations supporting the empirical findings are also investigated, and their policy implications are discussed.

Suggested Citation

  • Luca V. A. Colombo & Gilberto Turati, 2014. "Why do Acquiring Banks in Mergers Concentrate in Well-Developed Areas? Regional Development and Mergers and Acquisitions (M&As) in Banking," Regional Studies, Taylor & Francis Journals, vol. 48(2), pages 363-381, February.
    • Handle: RePEc:taf:regstd:v:48:y:2014:i:2:p:363-381
    DOI: 10.1080/00343404.2011.653337
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00343404.2011.653337
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343404.2011.653337?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Krishna B. Kumar & Raghuram G. Rajan & Luigi Zingales, "undated". "What Determines Firm Size?," CRSP working papers 496, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
    2. Ilko Naaborg & Bert Scholtens & Jakob de Haan & Hanneke Bol & Ralph de Haas, 2004. "How Important are Foreign Banks in the Financial Development of European Transition Countries?," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 3(2), pages 99-123, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gada, Viswa Prasad & Popli, Manish & Malhotra, Shavin, 2024. "Geographic distance in cross-border acquisitions: The impact of CEO's psychological attributes," Journal of International Management, Elsevier, vol. 30(1).
    2. Jakša Krišto & Iva Mandac, 2015. "Characteristics of bank financial intermediation in Croatian counties," EFZG Working Papers Series 1502, Faculty of Economics and Business, University of Zagreb.
    3. Ron Boschma & Matté Hartog, 2014. "Merger and Acquisition Activity as Driver of Spatial Clustering: The Spatial Evolution of the Dutch Banking Industry, 1850–1993," Economic Geography, Taylor & Francis Journals, vol. 90(3), pages 247-266, July.
    4. Harald Bathelt & Sebastian Henn, 2021. "Knowledge exchanges, trust, and secretive geographies in merger and acquisition processes," Environment and Planning A, , vol. 53(6), pages 1435-1453, September.
    5. Jaksa Kristo & Iva Mandac, 2015. "Characteristics of bank financial intermediation in Croatian counties," Financial Theory and Practice, Institute of Public Finance, vol. 39(1), pages 57-82.
    6. Jiawei Wu & Yehua Dennis Wei & Wen Chen, 2020. "Spatial proximity, localized assets, and the changing geography of domestic mergers and acquisitions in transitional China," Growth and Change, Wiley Blackwell, vol. 51(3), pages 954-976, September.
    7. Ron Boschma & Emanuela Marrocu & Raffaele Paci, 2016. "Symmetric and asymmetric effects of proximities. The case of M&A deals in Italy," Journal of Economic Geography, Oxford University Press, vol. 16(2), pages 505-535.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jureviciene Daiva & Pupelyte Laura, 2013. "Forecasting of the Influence of Financial Institutions Loan Portfolio Change for the Economic Sectors of the Country," Creative and Knowledge Society, Sciendo, vol. 3(1), pages 1-16, July.
    2. Hartwell, Christopher A., 2014. "The impact of institutional volatility on financial volatility in transition economies : a GARCH family approach," BOFIT Discussion Papers 6/2014, Bank of Finland, Institute for Economies in Transition.
    3. Falavigna, Greta & Ippoliti, Roberto, 2023. "SMEs’ behavior under financial constraints: An empirical investigation on the legal environment and the substitution effect with tax arrears," The North American Journal of Economics and Finance, Elsevier, vol. 66(C).
    4. Luc Laeven & Christopher Woodruff, 2007. "The Quality of the Legal System, Firm Ownership, and Firm Size," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 601-614, November.
    5. Zhiqiang Liu & Ji Li & Hong Zhu & Zhenyao Cai & Luning Wang, 2014. "Chinese firms’ sustainable development—The role of future orientation, environmental commitment, and employee training," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 195-213, March.
    6. Almeida, Rita & Carneiro, Pedro, 2006. "Enforcement of Regulation, Informal Labour, Firm Size and Firm Performance," CEPR Discussion Papers 5976, C.E.P.R. Discussion Papers.
    7. Beck, T.H.L., 2007. "Financing constraints of SMEs in developing countries : Evidence, determinants and solutions," Other publications TiSEM 85aac075-08b5-44ce-bf1a-9, Tilburg University, School of Economics and Management.
    8. Elisabetta Trevisan, 2008. "Enforcement of Employment Protection and the hiring behaviour of firms. Evidence from a large Italian region," Working Papers 2008_25, Department of Economics, University of Venice "Ca' Foscari".
    9. Lora, Eduardo & Cortés, Patricia & Herrera, Ana María, 2001. "Los obstáculos al desarrollo empresarial y el tamaño de las firmas en América Latina," IDB Publications (Working Papers) 2144, Inter-American Development Bank.
    10. Anderson, Anne & Gupta, Parveen P., 2009. "A cross-country comparison of corporate governance and firm performance: Do financial structure and the legal system matter?," Journal of Contemporary Accounting and Economics, Elsevier, vol. 5(2), pages 61-79.
    11. Thorsten Beck, 2003. "Small and medium enterprises, growth, and poverty : cross-country evidence," Policy Research Working Paper Series 3178, The World Bank.
    12. Fabiano Schivardi & Roberto Torrini, 2004. "Firm size distribution and employment protection legislation in Italy," Temi di discussione (Economic working papers) 504, Bank of Italy, Economic Research and International Relations Area.
    13. Quintin, Erwan, 2008. "Limited enforcement and the organization of production," Journal of Macroeconomics, Elsevier, vol. 30(3), pages 1222-1245, September.
    14. Giuseppe Espa & Danila Filipponi & Diego Giuliani & Davide Piacentino, 2015. "Effetti spaziali o settoriali? La crescita della dimensione media d?impresa in Italia," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2015(1), pages 41-65.
    15. Panayotis Kapopoulos & Anastasios Rizos, 2024. "Judicial efficiency and economic growth: Evidence based on European Union data," Scottish Journal of Political Economy, Scottish Economic Society, vol. 71(1), pages 101-131, February.
    16. Mitton, Todd, 2008. "Institutions and concentration," Journal of Development Economics, Elsevier, vol. 86(2), pages 367-394, June.
    17. A. Arrighetti & S. Curatolo & A. Lasagni, 2008. "Determinanti della domanda di laureati nell'industria manifatturiera italiana," Economics Department Working Papers 2008-EP02, Department of Economics, Parma University (Italy).
    18. Alfaro, Laura & Charlton, Andrew, 2006. "International financial integration and entrepreneurship," LSE Research Online Documents on Economics 19796, London School of Economics and Political Science, LSE Library.
    19. Pablo de Pedraza, 2008. "Labour Market Matching Efficiency In The Czech Republic Transition," William Davidson Institute Working Papers Series wp920, William Davidson Institute at the University of Michigan.
    20. World Bank, 2020. "Judiciary of The Republic of Uganda," World Bank Publications - Reports 34154, The World Bank Group.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:48:y:2014:i:2:p:363-381. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.