The Impact of Cross-Border and Activity Diversifying Mergers and Acqusitions on Shareholders` Wealth in Financial Sector: Evidence from Emerging Markets Banks

Student: Leonov Yan

Educational Programme: Economics (Bachelor)

Final Grade: 8

Year of Graduation: 2017

Following the global wave of consolidation in the financial sector this paper examines the influence of activity diversifying and cross-border in and out of emerging economies mergers and acquisitions (M&As) on acquirer banks shareholders` wealth. Despite the intensive research of banking M&As in the last decades, the attention paid to this issue is surprisingly limited. The general purpose of this work is to find value-enhancing M&A strategy for different types of deals by studying the determinants of shareholders` wealth. Our results are different from the previous researches. We find that cost-to-income ratio, acquirer`s country GDP growth, total loans to total assets ratio and acquirer`s assets` growth one year before announcement are the main determinants of value-enhancing mergers and acquisition.

Full text (added May 19, 2017)

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