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This paper studies the bilateral drivers of mergers and acquisitions (M&As) between European banks. Two findings document that banks use M&A as a device to leverage their expertise rather than to diversify. (i) Following the literature on matrimonial matching by using a binary logit model, the...
Persistent link: https://www.econbiz.de/10013265942
This paper studies for the first time the links between interbank liability and equity markets (financial exposure), and mergers and acquisitions (M&As) in the European banking sector, both at the micro and macro level. Using a binary logit model, the paper first examines - at the micro level -...
Persistent link: https://www.econbiz.de/10013367631
A growing body of literature indicates that competition increases bank soundness. Applying an industrial organization … indeed increases bank efficiency. Second, building on these results, we examine the relation between the Boone indicator … bank soundness. We find evidence that competition robustly increases bank soundness, via the efficiency channel …
Persistent link: https://www.econbiz.de/10003789457
this policy through banks. This paper examines the role of bank liquidity, capitalization and market power as internal … monetary policy change on bank performance is also considered. The empirical analysis, using large panel datasets for the … rates by disaggregating down to the individual bank level. This is achieved by the use of a Local GMM technique that also …
Persistent link: https://www.econbiz.de/10008657136
We construct a novel measure of bank performance, investigate its determinants, and show that it affects bank … inefficiencies, rather than monetary or regulatory measures, were the main driver of bank underperformance. We also show that higher …
Persistent link: https://www.econbiz.de/10014528253
-merger financial performance. We find that, on average, bank mergers in the European Union resulted in improved return on capital. By …
Persistent link: https://www.econbiz.de/10009639458
asymmetries within the bank combined with fixed wages. Two kinds of inefficiencies arise in equilibrium: the credit officer either … bank accepts the information asymmetries, is called the centralized structure. Under decentralized structure the bank … finance more small firms, but incur higher costs than centralized ones. Small banks are interpreted as a bank with relatively …
Persistent link: https://www.econbiz.de/10009639467
We study the effect of interbank market integration on small firm finance in the build-up to the 2007-2008 financial crisis. We use a comprehensive data set that contains contract terms on individual loans to 6,047 firms across 14 European countries between 1998:01 and 2005:12. We account for...
Persistent link: https://www.econbiz.de/10009640288
; selection ; loan rates ; bank competition ; firm leverage …
Persistent link: https://www.econbiz.de/10008659379
anonymity but cannot be used for more efficient online transactions. By contrast, bank deposits can be used online but do not …
Persistent link: https://www.econbiz.de/10013193453