Research On Bank Efficiency And Determinents Of Cross-Border M & A: Based On Eu Cases

Cross-border merger and acquisition is an important strategy for a bank to achieve its internationally-oriented management. The banking cross-border mergers and acquisitions have been promoting the global re-distribution of financial resources and re-division of financial territory, and accelerating the process of the global financial and economic integration. While China's process of the bank'internationalization has been speeding up, the government has been promoting the obvious strategy-oriented overseas M&A in banking, instead of much more attention on the efficiency-motivated. How to change this situation and to promote the banking efficiency in cross-border M&A will be taken into account in the near feature and even in the long run. Study on the banking efficiency and its underlying determinants have an important theoretical and practical significance for China banking internationalization.This dissertation argues that the main line is:firstly, establishing a theoretical analysis framework of the banking efficiency and its underlying determinants in cross-border M&A; secondly, identifying the underlying causal determinants of banking efficiency in cross-border M&A with the qualitative analysis and their integration into a unified mathematical model; thirdly, selecting the original EU-15 banks' cross-border M&A samples, doing an empirical analysis on their banking cross-border M&A, and explaining the models-based results, because EU banking cross-border M&A has witnessed a relatively mature experience; Finally, suggesting some policies to enhance China's banking efficiency in cross-border M&A, based on the structured theoretical framework, drawing on EU models-based experiences. Under the guidance of the above-mentioned main line, this thesis is divided into six chaptersChapterâ… .,Introduction. This paper describes the research background, method, main content and research roadmap. This article refers the banking efficiency in cross-border M&A as one of the main elements of the performance in cross-border M&A. The other two elements can be measured by shareholder value and market forces. We illustrate why we find out the banking efficiency in cross-border M&A as the paper theme.Chapterâ…¡., Literature Review. We try to illustrate the relationship between motivation, efficiency and performance of cross-border M&A in banking, so as to lay the sound foundation for further writing and to avoid ambiguity of causation and too many concepts. We give a literature review mainly from two prospects:the relationships between the motive and the efficiency of the banking cross-border M&A, as well as the relationships between the performance and the efficiency of the banking cross-border M&A. Existing research literature has the following problems:lack of systematic and relevant research; deficient researches in the underlying determinants of efficiency; research samples only on U.S. banking cross-border M&A. In addition, the existing empirical research findings are contradictory. This has prompted our in-depth study of this issue.Chapterâ…¢., a theoretical analysis framework. In view of acquiring party, the decisive factors are subdivided into four categories:acquisition of the similarity of countries, the host macro-economic factors, the host meso-economic factors, and the target bank micro-economic factors. The first class is about mutual variable to discuss the relevance between the acquiring and acquired countries. The second and the third are about the host micro and meso-economical characteristics. The fourth is about the characteristics of target bank. Finally, we reconstruct a unified mathematical model of these four categories of impact factors into the theoretical analysis framework.Chapterâ…£., empirical analysis on EU cases. Based on European cases, we make an empirical analysis on the focus of this paper:efficiency and its determinants.Firstly, using data envelopment analysis (DEA), we analyze the cost-efficiency and profit efficiency of European banking cross-border M&A, comparing the differences of the efficiency of EU banking cross-border M&A. The results show that the profit efficiency has been improved, but the cost-effective changes are not significant. Through the different samples of EU banking cross-border M & A, we make the basic conclusion that the rating in terms of the cost efficiency or profit efficiency in the samples in the target markets of developed countries are much higher than in transition countries. This must be related to more efficiency barriers in some host transition countries.Secondly, after the examination of the cost efficiency and profit efficiency of EU banking cross-border M&A, we analyze the rating of the cost efficiency and profit efficiency and its reasons in terms of similarity of language and economic scale, law system and economic development, host micro-economic factors, industrial concentration ratio, host banking market network density, more high asset-liability ratio of target bank, more risk. In the analysis based on the total sample, we also group the samples to analyze if the results can be applied in the efficiency of the different M & A activities. Based on the level of economic development, the samples are divided into two groups:the sample of banking cross-border M&A in well-developed countries as a host and the one in transition countries as the host.Chapterâ…¤, the interpretation of empirical results. We investigate the differences of the results between two sample groups. We analyze the reasons behind the efficiency difference of the four main determinants on the samples in the transition countries and the developed countries, and discuss how to make the regional options of banking cross-border M&A, determine the size of demand for banking cross-border M&A, select the characteristics of M & A target market, and optimize the selection of target bank.Chapterâ…¥., enlightenments for China and conclusions. We make policy recommendations on China banking cross-border M&A. Firstly, we review the history and characteristics of China banking cross-border M&A. Secondly, based on the efficiency of banking cross-border M&A and its theoretical analysis framework of determinants, we suggest a dependence path to hence the efficiency of China banking cross-border M&A. Finally, we summarize the analysis system of the paper.