Performance Changes Around Banks Mergers and Acquisitions: Evidence from Poland
This study investigates the influence of M&A on the performance of banks operating in Poland. We use a sample of 14 transactions that occurred in the Polish banking sector from 2001 to 2015. Our data set includes pre and post-merger accounting information covering a period of two years before an...
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| Format: | Article |
| Language: | English |
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Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
2019-01-01
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| Series: | Nauki o Finansach |
| Online Access: | https://journals.ue.wroc.pl/fins/article/view/250 |
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| author | Katarzyna Budny Joanna Krasodomska Katarzyna Świetla |
| author_facet | Katarzyna Budny Joanna Krasodomska Katarzyna Świetla |
| author_sort | Katarzyna Budny |
| collection | DOAJ |
| description | This study investigates the influence of M&A on the performance of banks operating in Poland. We use a sample of 14 transactions that occurred in the Polish banking sector from 2001 to 2015. Our data set includes pre and post-merger accounting information covering a period of two years before and after the merger. We follow Pilloff's [1996] approach to determine the average performance changes measured with ROAA and ROAE. According to the research results, M&As transactions seem to affect profitability as both ROAA and ROAE means change. However, these changes do not follow the same trend. The correlations between the acquirer's pre-merger weighted performance measured with ROAA and ROAE and merger-related changes in performance are significant and negative. The same situation is observed as regards the target pre-merger weighted performance measured with ROAE and merger-related changes in performance. The results also suggest that large acquirers are associated with less successful M&A.(original abstract) |
| format | Article |
| id | doaj-art-8cc7e340056e4de3a9a323cccfdf1fa7 |
| institution | OA Journals |
| issn | 2449-9811 |
| language | English |
| publishDate | 2019-01-01 |
| publisher | Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu |
| record_format | Article |
| series | Nauki o Finansach |
| spelling | doaj-art-8cc7e340056e4de3a9a323cccfdf1fa72025-08-20T01:52:15ZengWydawnictwo Uniwersytetu Ekonomicznego we WrocławiuNauki o Finansach2449-98112019-01-01242251Performance Changes Around Banks Mergers and Acquisitions: Evidence from PolandKatarzyna Budny0Joanna Krasodomska1Katarzyna Świetla2Cracow University of EconomicsCracow University of Economics, PolandCracow University of Economics, PolandThis study investigates the influence of M&A on the performance of banks operating in Poland. We use a sample of 14 transactions that occurred in the Polish banking sector from 2001 to 2015. Our data set includes pre and post-merger accounting information covering a period of two years before and after the merger. We follow Pilloff's [1996] approach to determine the average performance changes measured with ROAA and ROAE. According to the research results, M&As transactions seem to affect profitability as both ROAA and ROAE means change. However, these changes do not follow the same trend. The correlations between the acquirer's pre-merger weighted performance measured with ROAA and ROAE and merger-related changes in performance are significant and negative. The same situation is observed as regards the target pre-merger weighted performance measured with ROAE and merger-related changes in performance. The results also suggest that large acquirers are associated with less successful M&A.(original abstract)https://journals.ue.wroc.pl/fins/article/view/250 |
| spellingShingle | Katarzyna Budny Joanna Krasodomska Katarzyna Świetla Performance Changes Around Banks Mergers and Acquisitions: Evidence from Poland Nauki o Finansach |
| title | Performance Changes Around Banks Mergers and Acquisitions: Evidence from Poland |
| title_full | Performance Changes Around Banks Mergers and Acquisitions: Evidence from Poland |
| title_fullStr | Performance Changes Around Banks Mergers and Acquisitions: Evidence from Poland |
| title_full_unstemmed | Performance Changes Around Banks Mergers and Acquisitions: Evidence from Poland |
| title_short | Performance Changes Around Banks Mergers and Acquisitions: Evidence from Poland |
| title_sort | performance changes around banks mergers and acquisitions evidence from poland |
| url | https://journals.ue.wroc.pl/fins/article/view/250 |
| work_keys_str_mv | AT katarzynabudny performancechangesaroundbanksmergersandacquisitionsevidencefrompoland AT joannakrasodomska performancechangesaroundbanksmergersandacquisitionsevidencefrompoland AT katarzynaswietla performancechangesaroundbanksmergersandacquisitionsevidencefrompoland |