Performance changes around banks mergers and acquisitions: evidence from Poland

• Authors: Katarzyna Budny , Joanna Krasodomska , Katarzyna Świetla
• Languages of publication: EN

Abstracts

EN

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.

Keywords

EN

banks; M&A; Poland; ROAA; ROAE

• Publisher: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
• Journal: Nauki o Finansach
• Year: 2019
• Issue: vol. 24 no. 2
• Pages: 28-45

Contributors

author

Katarzyna Budny

author

Joanna Krasodomska

author

Katarzyna Świetla