IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

The Static and Dynamic Effects of Mergers and Acquisitions on Productivity in The period Post-Subprime Crisis: An Empirical Application to the Banking Sector in the European Union

Listed author(s):
  • Hassen Toumi

    ()

    (University of Economics and Management of Sfax, Tunisia)

  • Fakhri Issaoui

    ()

    (College of Business Administration, Majmaa University, Saudi Arabia)

  • Bilel Ammouri

    ()

    (University of Carthage (UR MASE) and University of Tunis (ESSEC Tunis), Tunisia)

  • Wassim Touili

    ()

    (Ecole Supérieure de Commerce de Tunis ESCT, Tunisia)

This article aims to detect the dynamic effect of M&A of European banks on productivity during the period from 2005 to 2013. The estimation of our model by the GMM method allowed us to detect the following results. First, in the long term, the European banking structure seems to be submitted to the divergence phenomenon which means that the banking industry will probably governed by monopolistic structures which will share the market equally or nearly equal. Second, the production factors(labour and capital) have had positive and significant effects on the banking product. However, the returns to scale are found to be decreasing as long as the sum of the labour coefficient (0.243) of fixed assets (0.16) and liquid assets (0.351) is less than unity. Third, the time had exerted a negative and significant effect on production which questions the validity of the chosen period characterized by the advent of the subprime crisis. Fourthly, the M&A had a significant positive effect on production which affirm that in a pessimistic environment; it seems that the M&A strategies can be effective solutions to overcome the crisis.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.ecrg.ro/files/p2015.5(2)6y3.pdf
Download Restriction: no

Article provided by Weissberg Publishing in its journal Economic Research Guardian.

Volume (Year): 5 (2015)
Issue (Month): 2 (December)
Pages: 143-158

as
in new window

Handle: RePEc:wei:journl:v:5:y:2015:i:2:p:143-158
Contact details of provider:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as
in new window


  1. B. Douglas Bernheim & Michael D. Whinston, 1990. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 1-26, Spring.
  2. Angbazo, Lazarus, 1997. "Commercial bank net interest margins, default risk, interest-rate risk, and off-balance sheet banking," Journal of Banking & Finance, Elsevier, vol. 21(1), pages 55-87, January.
  3. Amel, Dean & Barnes, Colleen & Panetta, Fabio & Salleo, Carmelo, 2004. "Consolidation and efficiency in the financial sector: A review of the international evidence," Journal of Banking & Finance, Elsevier, vol. 28(10), pages 2493-2519, October.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wei:journl:v:5:y:2015:i:2:p:143-158. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mihai Mutascu)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.