Determinants of Cross-Border Bank Acquisitions in Transition Economies: A Latent Class Analysis
We analyze the microeconomic determinants of cross-border bank acquisitions in 16 transition economies over the period 1996-2006. By using a latent class discrete choice model we explicitly incorporate the macroeconomic and institutional heterogeneity of the transition economies into our analysis. We find that foreign banks target relatively large and efficient banks when they enter transition economies with weak institutions. This evidence provides support for the market power hypothesis. However, when foreign banks enter more developed transition economies that have made progress in economic reform, they acquire less efficient banks. This result is in line with the efficiency hypothesis.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: Poschingerstrasse 5, 81679 Munich|
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
More information through EDIRC
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.:
- Stijn Claessens & Neeltje van Horen, 2008.
"Location Decisions of Foreign Banks and Institutional Competitive Advantage,"
DNB Working Papers
172, Netherlands Central Bank, Research Department.
- Stijn Claessens & Neeltje Horen, 2014. "Location Decisions of Foreign Banks and Competitor Remoteness," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 46(1), pages 145-170, 02.
- Claessens, Stijn & Van Horen, Neeltje, 2007. "Location decisions of foreign banks and competitive advantage," Policy Research Working Paper Series 4113, The World Bank.
- Gleb Lanine & Rudi Vander Vennet, 2007.
"Microeconomic determinants of acquisitions of Eastern European banks by Western European banks,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 15(2), pages 285-308, 04.
- G. Lanine & R. Vander Vennet, 2006. "Microeconomic determinants of acquisitions of Eastern European banks by Western European banks," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/414, Ghent University, Faculty of Economics and Business Administration.
- Jonathan Williams & Angel Liao, 2008. "The Search for Value: Cross-border Bank M&A in Emerging Markets," Comparative Economic Studies, Palgrave Macmillan, vol. 50(2), pages 274-296, June.
- Haselmann, Rainer, 2006. "Strategies of foreign banks in transition economies," Emerging Markets Review, Elsevier, vol. 7(4), pages 283-299, December.
- Jakob de Haan & Susanna Lundstroem & Jan-Egbert Sturm, 2005.
"Market oriented institutions and policies and economic growth: A critical survey,"
TWI Research Paper Series
5, Thurgauer Wirtschaftsinstitut, Universitï¿½t Konstanz.
- Jakob De Haan & Susanna Lundström & Jan-Egbert Sturm, 2006. "Market-oriented institutions and policies and economic growth: A critical survey," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 157-191, 04.
- Berger, Allen N. & Humphrey, David B., 1991.
"The dominance of inefficiencies over scale and product mix economies in banking,"
Journal of Monetary Economics,
Elsevier, vol. 28(1), pages 117-148, August.
- Allen N. Berger & David B. Humphrey, 1990. "The dominance of inefficiencies over scale and product mix economies in banking," Finance and Economics Discussion Series 107, Board of Governors of the Federal Reserve System (U.S.).
- Allen N. Berger & Robert De Young & Gregory F. Udell, 2001.
"Efficiency Barriers to the Consolidation of the European Financial Services Industry,"
European Financial Management,
European Financial Management Association, vol. 7(1), pages 117-130.
- Allen N. Berger & Robert DeYoung & Gregory F. Udell, 2000. "Efficiency barriers to the consolidation of the European financial services industry," Finance and Economics Discussion Series 2000-37, Board of Governors of the Federal Reserve System (U.S.).
- Lensink, Robert & Meesters, Aljar & Naaborg, Ilko, 2008.
"Bank efficiency and foreign ownership: Do good institutions matter?,"
Journal of Banking & Finance,
Elsevier, vol. 32(5), pages 834-844, May.
- Robert Lensink & Aljar Meesters & Ilko Naaborg, 2008. "Bank efficiency and foreign ownership: do good institutions matter?," ULB Institutional Repository 2013/14283, ULB -- Universite Libre de Bruxelles.
- Fries, Steven & Taci, Anita, 2005. "Cost efficiency of banks in transition: Evidence from 289 banks in 15 post-communist countries," Journal of Banking & Finance, Elsevier, vol. 29(1), pages 55-81, January.
- Bol, Hanneke & Lensink, Robert & Haan, Jakob de, 2002. "Do reforms in transition economies affect foreign bank entry?," CCSO Working Papers 200205, University of Groningen, CCSO Centre for Economic Research.
- Focarelli, Dario & Panetta, Fabio & Salleo, Carmelo, 2002. "Why Do Banks Merge?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 34(4), pages 1047-66, November.
- Robert Lensink & Jakob Haan, 2002. "Do Reforms in Transition Economies Affect Foreign Bank Entry?," International Review of Finance, International Review of Finance Ltd., vol. 3(3-4), pages 213-232.
- Focarelli, Dario & Pozzolo, Alberto Franco, 2008.
"Cross-border M&As in the financial sector: Is banking different from insurance,"
Journal of Banking & Finance,
Elsevier, vol. 32(1), pages 15-29, January.
- Pozzolo, Alberto Franco & Focarelli, Dario, 2007. "Cross-Border M&As in the Financial Sector. Is Banking Different from Insurance?," Economics & Statistics Discussion Papers esdp07032, University of Molise, Dept. EGSeI.
- Focarelli, Dario & Pozzolo, Alberto Franco, 2001. "The patterns of cross-border bank mergers and shareholdings in OECD countries," Journal of Banking & Finance, Elsevier, vol. 25(12), pages 2305-2337, December.
- repec:dgr:rugccs:200205 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_2372. 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: (Klaus Wohlrabe)
If references are entirely missing, you can add them using this form.