Bank M&A in Central and Eastern Europe

32 Pages Posted: 2 Mar 2007 Last revised: 18 Dec 2007

See all articles by Markus Fritsch

Markus Fritsch

Goethe University Frankfurt - Chair of Banking and Finance

Fabian Gleisner

Goethe University Frankfurt - Faculty of Economics and Business Administration

Markus Holzhäuser

Goethe University Frankfurt - Faculty of Economics and Business Administration

Date Written: February 2007

Abstract

We study abnormal returns for bidding banks of 56 cross-border M&A transactions that occurred between 1990 and 2005 that involved target banks from Central and Eastern European (CEE) and bidder banks from Western European countries and the US. Furthermore we determine success factors of the M&A deals with a special focus on emerging market characteristics. Our results show that country and deal specific factors have significant explanatory power for excess returns to the bidding bank's shareholder. Low economic freedom and thus high regulation as well as low GDP growth in the target markets are key factors for value creation.

Keywords: European banks, event study, bank mergers

JEL Classification: G14, G24, G21, G34

Suggested Citation

Fritsch, Markus and Gleisner, Fabian and Holzhäuser, Markus, Bank M&A in Central and Eastern Europe (February 2007). Available at SSRN: https://ssrn.com/abstract=966294 or http://dx.doi.org/10.2139/ssrn.966294

Markus Fritsch (Contact Author)

Goethe University Frankfurt - Chair of Banking and Finance ( email )

Mertonstr. 17
P.O. Box 11932
60054 Frankfurt (Main)
Germany

Fabian Gleisner

Goethe University Frankfurt - Faculty of Economics and Business Administration ( email )

Department of Economics
Frankfurt am Main
Germany

Markus Holzhäuser

Goethe University Frankfurt - Faculty of Economics and Business Administration ( email )

Department of Economics
Frankfurt am Main
Germany

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