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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Main Authors: Katarzyna Budny, Joanna Krasodomska, Katarzyna Świetla
Format: Article
Language:English
Published: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu 2019-01-01
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)
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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