Article ID Journal Published Year Pages File Type
958094 Journal of Economics and Business 2008 19 Pages PDF
Abstract

We examine the impact of European Union banks’ strategic similarities on post-merger performance. We find that, on average, bank mergers have resulted in improved performance. We also find that for domestic deals, it can be quite costly to integrate institutions which are dissimilar in terms of their loan, earnings, cost, deposit and size strategies. For cross-border mergers, differences between merging partners in their loan and credit risk strategies are conducive to higher performance, whereas diversity in their capital and cost structure has a negative impact from a performance standpoint.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Strategy and Management
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