The effects of cross‐border M&As on the acquirers’ domestic performance: firm‐level evidence

Abstract This paper provides empirical evidence on the effects of cross‐border mergers and acquisitions (M&As) on the acquiring firms’ domestic performance in the U.K. and France. We build a new firm‐level data set that combines a global M&A database with balance sheet data for the years 2000 to 2007. Combining matching techniques with a difference‐in‐differences estimator, we find that cross‐border M&As boost on average acquirers’ domestic sales and investment, and they are not accompanied by a downsizing of the domestic labour force in either country. Further, cross‐border M&As in knowledge‐intensive industries lead to improvements in domestic productivity. Our results display some heterogeneity across industries and types of acquisitions, suggesting a connection between the motives for international M&As and their resulting effects.     

Difficult to digest: Takeovers of distressed banks in Vietnam

Government-induced or voluntary takeovers are frequently used as an indirect way to bail out distressed banks. In this paper, we analyse the impact of acquisitions on banking performance in Vietnam. To demonstrate that the acquirer is not simply inheriting the properties of the underperforming targets, we compare the performance of the merged bank to the pro forma consolidated performance of the acquirer and the target before the merger. We show that takeovers during and after the financial crisis substantially weaken profitability and liquidity and that this negative effect persists for a period of at least 6 years. These findings show that shareholders should be wary of acquisitions and suggest that stabilizing banks through mergers may have detrimental indirect long-term consequences on the efficiency of financial systems and ultimately economic growth.     

A performance assessment of Mozambique banks: a Bayesian stochastic frontier

This article analyses the technical efficiency of Mozambican banks from 2005 to 2014 with a Bayesian stochastic frontier model. The intermediate approach is adopted and the results reveal that efficiency varies amongst the banks analysed. Foreign ownership of Mozambican banks is also analysed, as is public ownership, the role of mergers and acquisitions, big banks and active dividend policy within the context of bank costs. Policy implications are then derived.     

Microeconomic determinants of acquisitions of Eastern European banks by Western European banks1

A considerable number of Western European banks acquired banks in Central and Eastern Europe from the mid‐1990s onwards. The question is whether or not this will improve the efficiency and profitability of the Central and Eastern European banking sectors. We test the relative strength of the efficiency versus the market power hypotheses by investigating the bank‐specific characteristics of the banks involved in the cross‐border acquisitions. We also examine the determinants of the post‐acquisition target banks’ performance. Our results indicate that large Western European banks have targeted relatively large and efficient Central and Eastern European countries (CEEC) banks with an established presence in their local retail banking markets. We find no evidence that cross‐border bank acquisitions in the CEEC are driven by efficiency motivations. The evidence supports the market power hypothesis, raising concerns about the optimal balance between foreign ownership and competition.     

MERGERS AND PRODUCT QUALITY: A SILVER LINING FROM DE‐HUBBING IN THE U.S. AIRLINE INDUSTRY

This paper investigates how de‐hubbing, which occurs when an airline ceases hub operations, impacts product quality. Examining four cases of de‐hubbing following U.S. airline mergers between 1998 and 2016, we analyze three product quality measures: on‐time performance, travel time, and flight cancellations. In order to isolate a merger's impact on product quality, we compare the results of four de‐hubbing events that followed a merger with three de‐hubbing cases that occurred independently of a merger. We find a silver lining from mergers because product quality improvements are isolated to de‐hubbing events which follow airline mergers rather than nonmerger‐induced de‐hubbing. (JEL L15, L93)     

Regulatory Policy and the Efficiency of the Banking Sector in Australia

This paper examines the technical efficiency of Australian banks during the post‐Wallis period (1997–2005). The results based on data envelopment analysis reveal that the extent of technical efficiency varies across the banks and over the years. The National Australia Bank, Commonwealth Bank and Macquarie Bank are found to be technically efficient, whereas Adelaide Bank, the Bank of Queensland and Westpac Bank are found to be prominently inefficient. Technical efficiency is the lowest among small banks and has declined over time largely due to deterioration in scale efficiency. Medium‐sized banks have outperformed both the small and large banks in terms of efficiency improvements. Some insights into the debate over the removal of the ‘four‐pillar’ policy are provided.     

An Assessment of Bank Merger Success in Germany

Abstract. German banks have experienced a merger wave since the early 1990s. However, the success of bank mergers remains a continuous matter of debate.This paper suggests a taxonomy to evaluate post-merger performance on the basis of cost and profit efficiency (CE and PE). I identify successful mergers as those that fulfill simultaneously two criteria. First, merged institutes must exhibit efficiency levels above the average of non-merging banks. Second, banks must exhibit efficiency changes between merger and evaluation year above efficiency changes of non-merging banks. I assess the post-merger performance up to 11 years after the mergers and relate it to the transfer of skills, the adequacy to merge distressed banks and the role of geographical distance. Roughly every second merger is a success in terms of either CE or PE. The margin of success in terms of CE is narrow, as efficiency differentials between merging and non-merging banks are around 1 and 2 percentage points. PE performance is slightly larger. More importantly, mergers boost in particular the change in PE, thus indicating persistent improvements of merging banks to improve the ability to generate profits.     

HOW DID STATE‐OWNED BANKS RESPOND TO PRIVATIZATION? EVIDENCE FROM THE INDIAN EXPERIMENT

ABSTRACT ** : The paper examines the response of banks to privatization. Using data on all state‐owned banks for the period 1990–2006, the findings indicate that fully state‐owned banks are significantly less profitable than partially privatized ones. The improvements in performance by partially privatized banks are, in fact, sustained after privatization. In addition, the analysis indicates that privatization improves profitability, efficiency and improves bank soundness, while lowering bank risk. While the improvement in bank risk is typically spread out over a much longer period, the progress in terms of profitability and economic efficiency typically occurs in the post‐privatization period.     

外资并购与目标企业效率研究:基于啤酒行业的实证分析

外资并购是外国直接投资进入中国市场的一种主要手段.随着加入WTO后,外资在中国啤酒行业掀起一波接一波的并购浪潮.以中国啤酒行业2002-2006年间28起并购为研究对象,选取124家啤酒企业的财务数据,采用DEA-Tobit两阶段回归模型,实证分析外资并购相对于国内并购对目标企业的效率的影响.结果显示:外资并购既没有提升目标企业的纯技术效率,也没有对目标企业的规模效率产生影响,而与之形成对照的是内资并购对目标企业的纯技术效率有显著的提升.     

CROSS‐MARKET TRADING IN CHINA'S LARGE STATE‐OWNED COMMERCIAL BANKS, 2006–2011

This paper examines the differential between the share prices of China's large state‐owned commercial banks traded in Shanghai versus prices observed in Hong Kong. We find a significant role for investor sentiment, as reflected in relative price‐earnings ratios, in explaining these price differentials for all four banks. The share price in Shanghai tends to move ahead of the share price in Hong Kong when more positive sentiment in Shanghai makes local investors willing to pay more for the same predicted earnings. We also identify common trends in relative bank price‐earnings ratios and price differentials across the two markets. (JEL G14, G15)     

Are mergers among cooperative banks worth a dime? Evidence on efficiency effects of M&As in Italy

We study the intense wave of mergers among Italian mutual cooperative banks (Banche di Credito Cooperativo, BCCs) trying to assess whether those mergers were efficiency-enhancing. Specifically, we employ a two-step procedure: first estimating bank-level cost efficiency scores over 1993–2013 via a stochastic frontier approach, then trying to explain the estimated BCCs' scores with a set of merger status dummies (never merged, before the first merger, merged once, merged twice, etc.) and a vector of control variables. We find that mergers increase mutual banks' cost efficiency only in 5% of the mergers, precisely those in which a BCC has merged at least three successive times with other BCCs. Besides, we conjecture that the serial mergers led those BCCs to reach remarkably large size and this could harm especially marginal borrowers (i.e. those likely served by smaller banks but neglected by bigger ones), with strong adverse impact on development and inequality and violating BCCs' ethics and mission.     

同行业企业并购决策的同伴效应及内在机制

并购是当前国内外企业常用的发展战略之一,是提升企业竞争力、增加经济效益的重要手段。本文从非理性行为视角出发,采集2010—2018年间A股市场中重大资产并购重组数据作为研究样本进行实证分析。研究发现,上市企业并购决策存在同伴效应;信息传输、软件和信息技术服务等新兴行业的企业同行并购频率对企业并购概率产生的影响小于制造业等传统行业;民营企业之间的并购同伴效应强于国有企业,但同伴效应在不同权属企业之间不具有传递性;高管联结程度高的企业并购同伴效应大于低联结程度企业。因此,建议加强对民营企业、传统行业、高管高联结企业并购非理性行为的监管,避免由于企业盲目跟风给企业绩效带来损失。     

和而不同：高管团队职能背景异质性对企业跨界技术并购绩效的影响

跨界技术并购能够为企业提供全新的创新思路,在技术融合与创新背景下,其优势易于发挥。在并购发生后,高管团队职能背景异质性在很大程度上作用于企业战略和创新决策,对企业发展具有至关重要的作用。因此,选取首次并购公告日在2007年1月1日到2016年12月31日间的73个跨界技术并购案例为样本,运用多元回归方法对高管团队职能背景异质性与企业跨界技术并购绩效的关系进行实证分析。结果显示,高管团队职能背景异质性对企业跨界技术并购绩效具有正向影响;市场化程度和可用冗余均正向调节上述作用。探索高管职能背景异质性对跨界技术并购绩效的作用机理,拓展信息决策理论应用情境,并为企业在跨界技术并购时进行高管团队配置和资源布局提供决策依据。     

并购对创新投入的影响及持续性研究

基于2013-2017年中国A股上市公司数据,从创新资金投入和人员投入两个方面出发,通过比较研究和回归分析,探讨并购行为和并购类型分别与创新投入间的关系,以及主并企业性质和行业性质对并购创新效应的调节作用。结果显示：并购行为有助于企业创新投入水平提高,且这种积极作用具有持续性。其中,横向并购与创新投入显著正相关,而纵向并购和多元化并购与创新投入的关系不显著。进一步研究发现,主并企业性质和行业性质对并购创新效应具有显著调节作用,具体表现为：非国有企业横向并购能够显著促进企业创新投入,而国有企业并购创新效应不显著;高新技术企业横向并购能够显著提高创新投入水平,而非高新技术企业并购创新效应不显著。研究结论丰富了并购创新效应相关研究,可为国内企业并购行为提供实践依据。     

Mergers and acquisition trends in Europe

The research revises, in a first step, the different European waves of mergers and acquisitions and their differences with the American waves. Mergers and acquisitions are defined as an important corporate restructuring method with four main different ways to make them. The body of this paper analyzes the merger and acquisition situation in 1994 in Europe compared with the situation in previous years. Mergers and acquisitions activity in major European countries in 1993 and 1994, various volume transactions in mergers and acquisitions activity, cross-border deals in Europe between 1989 and 1994, and the big buyers in cross-border deals in 1994 are analyzed. The paper also emphasizes the different characteristics and their evolution.     

Picking “Lemons” or Picking “Cherries”? Domestic and Foreign Acquisitions in Norwegian Manufacturing*

We compare the performance in employment, wages and productivity for domestic plants acquired by new domestic and foreign owners. Prospective foreign owners pick large, high‐wage, high‐productivity plants, while new domestic owners choose average performers of above‐average size. Employment, labour productivity, and total factor productivity decline in domestic acquisition targets before acquisitions; only wages recover afterwards. Employment, wages and labour productivity increase after foreign acquisitions. The sample selection introduced by long‐term comparisons and a focus on unique events introduces a downward bias into the results for domestic acquisitions and an upward bias for the foreign acquisitions.     

国有企业混合所有制改革背景下的商业银行业务机会

商业银行作为金融体系的重要组成部分,在国有企业混合所有制改革中扮演着重要角色。在国有企业进行兼并重组的情况下,商业银行应选择并购贷款、撮合顾问、基金资管、资产证券化等作为业务切入点,并在银行业务监管层面、所有权保护、风险防控、应对混合所有制推进业务、业务创新方面进行改革。     

“一带一路”背景下我国跨境并购现状、问题及对策建议

从国际上来看,跨国并购是对外直接投资的主流。随着我国企业"走出去"步伐不断加快,中国跨国企业对发达国家企业发起的跨国并购逐渐增多,已有不少成功案例,但总体来说成功率并不高。与发达国家企业发起的并购相比,新兴国家企业对发达国家企业发起的跨国并购有其独特的特点。基于此,分析我国跨国并购的现状及存在的问题,并提出对策建议。     

TO JOIN OR NOT TO JOIN? DO BANKS THAT ARE PART OF A FINANCIAL HOLDING COMPANY PERFORM BETTER THAN BANKS THAT ARE NOT?

This study compares the performance of banks that are part of a financial holding company (FHC banks) with that of banks that are not (independent banks) using Taiwan data from 2002:Q1 to 2006:Q2. The comparisons are based on 14 performance ratios resulting from the concept of CAMEL (which is an acronym for Capital adequacy, Asset quality, Management efficiency, Earnings ability, and Liquidity sufficiency). To ensure that becoming part of an FHC is a random process, we used four matching methods to select the controlled banks so that the characteristic variables of banks in the two groups are statistically indifferent. By using the data before matching, it was found that FHC banks significantly defeat independent banks, regardless of their performance ratios. Conversely, when the sample was used after the matching, the results changed dramatically. Although FHC banks still beat the independent banks in terms of capital adequacy, asset quality, and liquidity sufficiency, FHC banks and independent banks are found to have equal profitability and management efficiency. Earlier studies that do not consider the endogeneity problem tend to overestimate the joining effect.(JEL C21, G21)     

技术相似度对中国制造业并购创新绩效影响模拟

以中国制造业相关数据为基础,研究技术相似度在并购创新系统中的作用。从系统动力学4个子系统入手,模拟并分析企业并购过程中技术相似度对创新绩效的影响。结论表明：并购双方技术相似度对创新绩效的影响呈现倒U型;技术相似度存在临界点,处在这一临界点的创新绩效最优。