Year of Graduation
The Motives of Mergers and Acquisitions of Commercial Banks in Eastern Europe
Mergers and acquisitions of banks are one of the ways of economic development of the country. An important issue in the study of mergers and acquisitions is the identification of the motives of such transactions. In the global economic literature, three main theories that can explain the motivation of companies to merge are generally accepted: the Theory of Synergy, the Agency Theory of Free Cash Flow and the Hubris Theory. Empirical analysis shows that the main motive of the Eastern European banks in mergers and acquisitions is the synergy.