The cross-border European banking M&A wave is currently at an all-time low in aggregated value, and with no similar precedents in the past century. From the 1980s until 2007, the M&A industry overall grew exponentially, changing the landscape of the financial structure and the economic wealth. This research groundwork comprises the period between 1985 and 2017, and was built under an extensive investigation about the major drivers of banking M&A. The focus of the empirical study was conducted to... zobrazit celý abstraktThe cross-border European banking M&A wave is currently at an all-time low in aggregated value, and with no similar precedents in the past century. From the 1980s until 2007, the M&A industry overall grew exponentially, changing the landscape of the financial structure and the economic wealth. This research groundwork comprises the period between 1985 and 2017, and was built under an extensive investigation about the major drivers of banking M&A. The focus of the empirical study was conducted to find evidence of the wealth effects to shareholders around the transaction announcement to the bidder, to the target, and to the combined entities. Our empirical findings regarding wealth effects in cross-border banking M&As show significant negative abnormal returns to the bidding banks after the announcement date, stock value creation to the targets, and significant positive abnormal stock gains to the combinedentities. We explain our different results from the existing studies until 2008 as stemming from the different financial landscape after the financial crisis, by the consistent lack of profitability, and by the excess of existing small and medium size banks in Europe during the last ten years.Our results are in line with the latest studies made by policy makers and scientific researchers about European banking profitability and consolidation. |