Abstract
This study investigates the determinants of the likelihood of being involved in mergers and acquisitions (M&As) in banking. Given that the M&A market has been especially active in banking, the main aim here is to test whether it is possible to predict ex ante potential acquirers and targets on the basis of a set of bank specific and regulatory/institutional characteristics. We suggest that significant implications follow. Professional investors in the secondary markets would have at their disposal a method of identifying firms more likely to be targets and acquirers, and hence to select the stocks to be included in their portfolios. Managers in the banking industry would have a way to identify the probability of running into an M&A operation, and therefore to put in place mechanisms to favour or to block it.
The authors wish to acknowledge the constructive comments offered by Francesco Cesarini, Mario Anolli and participants at the Wolpertinger Conference 2009.
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© 2010 Elena Beccalli and Pascal Frantz
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Beccalli, E., Frantz, P. (2010). What are the Determinants of Mergers and Acquisitions in Banking?. In: Fiordelisi, F., Molyneux, P., Previati, D. (eds) New Issues in Financial Institutions Management. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, London. https://doi.org/10.1057/9780230299153_11
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DOI: https://doi.org/10.1057/9780230299153_11
Publisher Name: Palgrave Macmillan, London
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