CEU Electronic Theses and Dissertations, 2017
| Author | Feygina, Vera Vladimirovna |
|---|---|
| Title | Mergers and Acquisitions of Financial Institutions in the US: Does Experience of Collaboration Matter? |
| Summary | This study deals with merger and acquisitions topic in financial industry. The purpose of this study is to determine what are the factors increasing chances of a bank to become a merger target. A number of factors suggested in the existing literature have been tested in a logit model on a sample of 2,346 US banking mergers occurring from 2001 to 2015. The empirical results support the hypothesis that acquirers are mostly looking to expand growth opportunities: other things equal banks with higher loans-to-deposits ratio, lower ROA, and higher income growth ratios are more likely targets. Additionally, the factor of preceding collaboration between an acquirer and a target has been suggested as a potential mechanism to enhance target’s trustworthiness and increase the likelihood of a merger. The collaboration was measured in terms of proximity in a network of US-affiliated lenders in syndicated loan market over the period 1987-1997. Based on the estimated logit coefficients on a sample of 1,890 bank pairs the hypothesis that the experience of direct collaboration is positively associated with the probability of a merger could not be rejected. However, the closeness of two banks in the network of other lenders does not seem to affect the likelihood of a future merger. |
| Supervisor | Zawadowski Adam |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2017/feygina_vera.pdf |
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