{"id":110363,"date":"2024-01-22T16:31:10","date_gmt":"2024-01-22T15:31:10","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/110363\/"},"modified":"2024-11-07T03:42:22","modified_gmt":"2024-11-07T02:42:22","slug":"endogenous-bank-mergers-and-their-impact-on-banking-performance","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/110363\/","title":{"rendered":"Endogenous Bank Mergers and Their Impact on Banking Performance"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-110363","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"This paper examines the effect of mergers on the performance of banks. We use a unique and exhaustive panel data set of mergers of Austrian banks covering the period from 1996 to 2002. A probit selection equation is formulated to explain the adoption of a merger strategy. We use various matching techniques to estimate the treatment effects of bank mergers on the banks' performance. The analysis provides evidence in favour of the view that there are longer lasting positive effects on bank performance, especially, in terms of improved cost efficiency. The findings also suggest that pre-merger effects are likely to occur in terms of higher cost efficiency immediately before the establishment of the merger. Finally, smaller banks involved in merger activities are more likely to enjoy cost-efficiency gains earlier than larger banks.","onlinedate":"2006-03-28 02:00:00","lang":"English","publication_series":"","publication_date":"20060301","publication_date_year":"","publication_date_full":false,"publication_num_pages":"30","keywords":"[\"Sample selection\",\"banking performance\",\"matching techniques\",\"merger effects\"]","jelcodes":"[]","related_publications":"[]","pdf":324034,"zip":null,"link":"","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"271","journal":"WIFO Working Papers","publisher":"","invisible":false,"external":false,"embargo_date":null,"types":[44410],"research_groups":[3491,3500],"collaboration":"","persons":[3574,3925],"persons_data":"[{\"personId\":3574,\"personName\":\"Peter Egger\",\"organisationNames\":[]},{\"personId\":3925,\"personName\":\"Franz R. Hahn\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Egger, P.<\\\/span><span>, &amp; Hahn, F. R.<\\\/span> (2006). <span>Endogenous Bank Mergers and Their Impact on Banking Performance<\\\/span>. <span><em>WIFO Working Papers<\\\/em><\\\/span>, (271). <a onclick=\\\"window.open(this.href, '_blank','noopener,noreferrer'); return false;\\\" href=\\\"https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/26354\\\" class=\\\"link\\\"><span>https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/26354<\\\/span><\\\/a><\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Egger P<\\\/span><span>, Hahn FR<\\\/span>. <span class=\\\"title\\\"><span>Endogenous Bank Mergers and Their Impact on Banking Performance<\\\/span><\\\/span>. <span>WIFO Working Papers<\\\/span>. 2006 Mar;(271).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{2daa76f78d024d83925e745641554e43,<\\\/div><div>  title    = \\\"Endogenous Bank Mergers and Their Impact on Banking Performance\\\",<\\\/div><div>  abstract = \\\"This paper examines the effect of mergers on the performance of banks. We use a unique and exhaustive panel data set of mergers of Austrian banks covering the period from 1996 to 2002. A probit selection equation is formulated to explain the adoption of a merger strategy. We use various matching techniques to estimate the treatment effects of bank mergers on the banks' performance. The analysis provides evidence in favour of the view that there are longer lasting positive effects on bank performance, especially, in terms of improved cost efficiency. The findings also suggest that pre-merger effects are likely to occur in terms of higher cost efficiency immediately before the establishment of the merger. Finally, smaller banks involved in merger activities are more likely to enjoy cost-efficiency gains earlier than larger banks.\\\",<\\\/div><div>  keywords = \\\"Sample selection, banking performance, matching techniques, merger effects, Sample selection, banking performance, matching techniques, merger effects\\\",<\\\/div><div>  author   = \\\"Peter Egger and Hahn, \\\\{Franz R.\\\\}\\\",<\\\/div><div>  year     = \\\"2006\\\",<\\\/div><div>  month    = mar,<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  journal  = \\\"WIFO Working Papers\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - Endogenous Bank Mergers and Their Impact on Banking Performance<\\\/p><p>AU  - Egger, Peter<\\\/p><p>AU  - Hahn, Franz R.<\\\/p><p>PY  - 2006\\\/3<\\\/p><p>Y1  - 2006\\\/3<\\\/p><p>N2  - This paper examines the effect of mergers on the performance of banks. We use a unique and exhaustive panel data set of mergers of Austrian banks covering the period from 1996 to 2002. A probit selection equation is formulated to explain the adoption of a merger strategy. We use various matching techniques to estimate the treatment effects of bank mergers on the banks' performance. The analysis provides evidence in favour of the view that there are longer lasting positive effects on bank performance, especially, in terms of improved cost efficiency. The findings also suggest that pre-merger effects are likely to occur in terms of higher cost efficiency immediately before the establishment of the merger. Finally, smaller banks involved in merger activities are more likely to enjoy cost-efficiency gains earlier than larger banks.<\\\/p><p>AB  - This paper examines the effect of mergers on the performance of banks. We use a unique and exhaustive panel data set of mergers of Austrian banks covering the period from 1996 to 2002. A probit selection equation is formulated to explain the adoption of a merger strategy. We use various matching techniques to estimate the treatment effects of bank mergers on the banks' performance. The analysis provides evidence in favour of the view that there are longer lasting positive effects on bank performance, especially, in terms of improved cost efficiency. The findings also suggest that pre-merger effects are likely to occur in terms of higher cost efficiency immediately before the establishment of the merger. 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