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Journal of Banking & Finance Vol. 33 No. 6 2009

Determinants of domestic and cross-border bank acquisitions in the European Union

Ignacio Hernando1; María J. Nieto1; Larry D. Wall2

1 Bank of Spain · 2 Federal Reserve Bank of Atlanta

Abstract

This paper analyzes the determinants of bank acquisitions both within and across countries in the EU-25 over the period 1997–2004. Our results suggest poorly managed banks (high cost to income) and larger banks are more likely to be acquired by other banks in the same country. The probability of being a target in a cross-border deal is larger for banks that are quoted in the stock market. Finally, banks operating in more concentrated markets are less likely to be acquired by other banks in the same country but are more likely to be acquired by banks in other EU-25 countries.

DOI
10.1016/j.jbankfin.2008.10.017
Volume
33
Issue
6
Pages
1022-1032
Language
en
Sources
openalex crossref bibtex:phds-export.bib

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