Post M&A Accounting Performance of Romanian Banks
Journal of Eastern Europe Research in Business & Economics, IBIMA Publishing, 2012
16 Pages Posted: 30 Sep 2012
Date Written: September 1, 2012
The purpose of this paper is to assess the financial performance of Romanian banks involved in M&A activities, as target banks, over a period of 10 years (1998-2008). Performance is analyzed in terms of profitability by using traditional accounting measures: ROE, ROA and NIM. Post-M&A performance for a 3-year period is compared with the aggregate ratios from all Romanian banks. The findings are mixed. On one hand, bank M&A in Romania does not result in improved ROE or ROA in the post M&A 3-year period under review. On the other hand, merged banks report media NIM above industry.
Keywords: mergers and acquisitions, performance, profitability, ROE, NIM
JEL Classification: G21, G34, M40
Suggested Citation: Suggested Citation