Determinants of cross-border bank acquisitions in transition economies: a latent class analysis

Arbeitspapier

We analyze the microeconomic determinants of cross-border bank acquisitions in 16 transition economies over the period 1996-2006. By using a latent class discrete choice model we explicitly incorporate the macroeconomic and institutional heterogeneity of the transition economies into our analysis. We find that foreign banks target relatively large and efficient banks when they enter transition economies with weak institutions. This evidence provides support for the market power hypothesis. However, when foreign banks enter more developed transition economies that have made progress in economic reform, they acquire less efficient banks. This result is in line with the efficiency hypothesis.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2372

Classification and Topics

• Classification: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Financial Markets and the Macroeconomy ; International Investment; Long-term Capital Movements
• Subject: Cross-border bank acquisitions ; latent class logistic model ; transition economie ; Internationale Bank ; Übernahme ; Ausländisch ; Bank ; Wirtschaftliche Effizienz ; Übergangswirtschaft ; Osteuropa

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Poghosyan, Tigran ; de Haan, Jakob
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/26417
• Last update: 10.03.2025, 11:41 AM CET