IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v10y2022i2p207-216.html
   My bibliography  Save this article

The impact of GDP on M&A volume in the European area in the context of the consolidation of the banking market

Author

Listed:
  • Ivana Kravcakova Vozarova

    (University of Prešov, Slovakia)

  • Martina Kosikova

    (University of Prešov, Slovakia)

  • Jaroslava Heckova

    (University of Prešov, Slovakia)

  • Alexandra Chapcakova

    (University of Prešov, Slovakia)

  • Maria Fulajtarova

    (Technical University of Košice, Slovakia)

Abstract

The banking sector of any nation is its key driver because the performance of the financial sector plays a vital role in the development of any economy. The European banking sector has gone through a process of rapid changes during the past three decades. The established trend of liberalization and deregulation resulted in a wave of massive consolidation, which fundamentally changed the environment in which banks did business. The main purpose of this paper is to evaluate relationships and, above all, quantify the impact of GDP on the volume of cross-border mergers and acquisitions in the banking sector for the period 2004 – 2021 in selected countries of the European Area by applying three panel regression methods. From the values shown, it follows that the percentage growth of GDP has a significant effect on the percentage growth of the volume of cross-border mergers and acquisitions in the banking sector and thus was the established hypothesis confirmed. The results confirmed that 1% growth in the economy will cause a 32% increase in the volume of cross-border mergers and acquisitions in the European Area.

Suggested Citation

  • Ivana Kravcakova Vozarova & Martina Kosikova & Jaroslava Heckova & Alexandra Chapcakova & Maria Fulajtarova, 2022. "The impact of GDP on M&A volume in the European area in the context of the consolidation of the banking market," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 10(2), pages 207-216, December.
    • Handle: RePEc:ssi:jouesi:v:10:y:2022:i:2:p:207-216
    DOI: 10.9770/jesi.2022.10.2(13)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/38/Vozarova_The_impact_of_GDP_on_MA_volume_in_the_European_area_in_the_context_of_the_consolidation_of_the_banking_market.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/1021
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2022.10.2(13)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ledenyov, Dimitri O. & Ledenyov, Viktor O., 2014. "Mergers and acquisitions transactions strategies in diffusion - type financial systems in highly volatile global capital markets with nonlinearities," MPRA Paper 52697, University Library of Munich, Germany.
    2. Marinko Škare & Małgorzata Porada-Rochoń, 2021. "Measuring the impact of financial cycles on family firms: how to prepare for crisis?," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1111-1130, September.
    3. Alexandra MICU & Ion MICU, 2016. "Mergers And Acquisitions In The Banking Sector During The Financial Crisis," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 11, pages 385-392, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rui Yang & Xin An & Yingwen Chen & Xiuli Yang, 2023. "The Knowledge Analysis of Panel Vector Autoregression: A Systematic Review," SAGE Open, , vol. 13(4), pages 21582440231, December.
    2. Jose Marquez-Tejon & Montserrat Jimenez-Partearroyo & Diana Benito-Osorio, 2024. "Organisational resilience management model: a case study of joint stock companies operating in Spain," International Entrepreneurship and Management Journal, Springer, vol. 20(3), pages 1907-1934, September.
    3. Espeche, José Francisco Tragant & Sacristán-Navarro, María & Zúñiga-Vicente, José Ángel & Crespo, Nuno Fernandes, 2023. "Innovation and internationalisation during times of economic growth, crisis, and recovery prior to Covid-19: A configurational approach comparing Spanish manufacturing family and non-family firms," Journal of Family Business Strategy, Elsevier, vol. 14(1).
    4. Rafał Kusa & Marcin Suder & Belem Barbosa & Beata Glinka & Joanna Duda, 2022. "Entrepreneurial behaviors that shape performance in small family and non-family hotels during times of crisis," International Entrepreneurship and Management Journal, Springer, vol. 18(4), pages 1545-1575, December.
    5. Emilios Galariotis & Kyriaki Kosmidou & Dimitrios Kousenidis & Eirini Lazaridou & Trifon Papapanagiotou, 2021. "Measuring the effects of M&As on Eurozone bank efficiency: an innovative approach on concentration and credibility impacts," Annals of Operations Research, Springer, vol. 306(1), pages 343-368, November.
    6. Ledenyov, Dimitri O. & Ledenyov, Viktor O., 2015. "Wave function method to forecast foreign currencies exchange rates at ultra high frequency electronic trading in foreign currencies exchange markets," MPRA Paper 67470, University Library of Munich, Germany.
    7. Svenja Jarchow & Christoph Kaserer & Henry Keppler, 2023. "Family firm performance in times of crisis—new evidence from Germany," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 543-580, September.

    More about this item

    Keywords

    cross-border merger; cross-border acquisition; gross domestic product; consolidation; banking sector; European Union;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouesi:v:10:y:2022:i:2:p:207-216. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.