Search results for query: Budny

1. Performance changes around banks mergers and acquisitions: evidence from Poland
   

   Author: Katarzyna Budny, Joanna Krasodomska, Katarzyna Świetla

   See Issue Contents: fins.2019.2

   Abstract:

   This study investigates the influence of M&Aon the performance of banks operating in Poland. We use asample of 14 transactions that occurred in the Polish banking sector from 2001 to 2015. Our data set includes pre and post-merger accounting information covering aperiod of two years before and after the merger. We follow Pilloff’s [1996] approach to determine the average performance changes measured with ROAA and ROAE. According to the research results, M&As transactions seem to affect profitability as both ROAA and ROAE means change. However, these changes do not follow the same trend. The correlations between the acquirer’s pre-merger weighted performance measured with ROAA and ROAE and merger-related changes in performance are significant and negative. The same situation is observed as regards the target pre-merger weighted performance measured with ROAE and merger-related changes in performance. The results also suggest that large acquirers are associated with less successful M&A.

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