European banking mergers : stock market and operating performance evaluation
Ismail, Ahmad Khalil (2000) European banking mergers : stock market and operating performance evaluation. PhD thesis, University of Warwick.
WRAP_THESIS_Ismail_2000.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Official URL: http://webcat.warwick.ac.uk/record=b1369195~S15
There has been a new wave of merger and acquisitions (M&A) activity since the early
1990's across the world, much of this occurring in the financial services industry.
This trend has affected Europe as well where the landscape of the financial services
industry has been changing. This M&A activity in general has stimulated more in
depth research to assess the consequences of the merger events, although
comparatively little work has been done on M&A activity in the European financial
This thesis uses a market return approach and an operating performance approach to
evaluate the M&As outcome in European banking. We document a minimal total
return, and a smaller target return in comparison to US studies. The post-merger
operating cash flow return on assets deteriorated but we also found a very minimal
improvement in efficiency which was not supportive enough to boost the cash flow
return on assets and the profitability of the merging partners, although these mergers
were mainly motivated by synergy.
Deeper research may provide more interesting findings using clinical studies that seek
as much detailed information about the merging partners as possible. It is also worth
examining the pattern of managerial ownership and how it affects the merger outcome
as this factor is an important one for regulators in the financial services Industry.
|Item Type:||Thesis or Dissertation (PhD)|
|Subjects:||H Social Sciences > HG Finance|
|Library of Congress Subject Headings (LCSH):||Bank mergers -- Europe, Banks and banking -- Europe --Evaluation|
|Official Date:||November 2000|
|Institution:||University of Warwick|
|Theses Department:||Warwick Business School|
|Supervisor(s)/Advisor:||Davidson, Ian R.|
|Sponsors:||Al Tajir World of Islam Trust|
|Extent:||viii, 270 leaves|
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