Mergers and Acquisitions in Europe: Do They Enhance Efficiency or Destroy Competition?
Mergers and Acquisitions in Europe: Do They Enhance Efficiency or Destroy Competition?
Period:
01.03.2007 – 30.06.2008
This project evaluates the anti-competitive impact of bank mergers and acquisitions (M&A) in EU using event study methodology. Substantial amount of literature indicates that M&A generate abnormal returns to the target firms and sometimes to acquiring firms. Due to its forward looking nature, stock price should reflect, if any, the anti-competitive effect of M&A perceived by investors. By analyzing abnormal returns induced by M&A in banking sector, we test whether M&A facilitate collusion and dominant-bank pricing or enhance efficiency.
Project members
Contact
Research Associate
To the profile
Qingwei Wang