The Impact of Mergers and Acquisitions on the Market Value of Shares of Erste Bank Group

Andreea Nicoleta POPOVICI

Andreea Nicoleta POPOVICI "Alexandru Ioan Cuza" University, Iasi

Keywords: Banking, Mergers&Aquisitions, Market Value.

Abstract

Mergers and acquisitions are ways used by banks to improve their profitability and to obtain other advantages. The purpose of this study is to analyze the impact of mergers and acquisitions on the performance of the bidder bank. For this study, I have chosen to research the impact of acquisitions and mergers of Erste Group during 2000-2011, considering the target bank is in Central and Eastern Europe. Using the event study methodology, the result of the study shows that a merger or an acquisition does not improve the value market of the shares of the bidder bank.

Author Biography

Andreea Nicoleta POPOVICI, "Alexandru Ioan Cuza" University, Iasi

Faculty of Economics and Business Administration PhD Student

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