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Bank merger and acquisitions activity in the EU: much ado about nothing?

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  • Catarina Figueira
  • Joseph Nellis

Abstract

This paper investigates the patterns of consolidation within the European banking industry and examines the efficiency of the banks involved in the merger and acquisitions (M&A) activity to determine whether their performance improved as a result of M&A decisions. The performance of these banks is compared with that of other large banks, which have chosen alternative routes of development. The period covered is 1998 to 2004. The findings suggest that banks involved in M&A activity are more efficient after the M&A or when compared with other large banks. Country-specific characteristics appear to play an important role in explaining the results.

Suggested Citation

  • Catarina Figueira & Joseph Nellis, 2009. "Bank merger and acquisitions activity in the EU: much ado about nothing?," The Service Industries Journal, Taylor & Francis Journals, vol. 29(7), pages 875-886, July.
    • Handle: RePEc:taf:servic:v:29:y:2009:i:7:p:875-886
    DOI: 10.1080/02642060902749476
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    Cited by:

    1. Chih-Ching Yang, 2010. "Service, investment, and risk management performance in commercial banks," The Service Industries Journal, Taylor & Francis Journals, vol. 32(12), pages 2005-2025, December.
    2. Rahman, Mahabubur & Lambkin, Mary & Hussain, Dildar, 2016. "Value creation and appropriation following M&A: A data envelopment analysis," Journal of Business Research, Elsevier, vol. 69(12), pages 5628-5635.

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