Cross-border bank acquisitions and company performance : The case of emerging markets

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Tezin Türü: Yüksek Lisans

Tezin Yürütüldüğü Kurum: Orta Doğu Teknik Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, İşletme Bölümü, Türkiye

Tezin Onay Tarihi: 2008

Öğrenci: MERT DEMİR

Danışman: SEZA DANIŞOĞLU

Özet:

In recent years, cross-border mergers and acquisitions have spurred in the global economy. With the breaking down of barriers around national economies, those economies that used to be centrally-planned and closed in the past have emerged as economies that offer invaluable investment and risk diversification opportunities that investors seek. As a natural result of this change, these economies become major targets for foreign investors. This thesis examines the impact of this foreign investment trend specifically for those bank mergers and acquisitions that take place in emerging economies. The impact of these transactions on the acquirer and target company shareholders and firm performance are analyzed and it is found that neither parties’ shareholders receive a significantly positive benefit in the short-term but there are significant benefits in the long-term. Moreover, while these bank consolidations resulted in improved profitability, efficiency and asset size for the target firms, no significant change is observed in deposit size, market share and capital adequacy of the targets. Similarly, improvement in profitability is evidenced for the acquirers while no major change in leverage risk is observed.