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

Michael Schröder

Michael Schröder

Project Coordinator
Senior Researcher

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Ernst Maug

Ernst Maug

Research Associate

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Qingwei Wang

Qingwei Wang

Research Associate

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Contact

Research Associate
Qingwei Wang
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