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Selection and hidden bias in cross-border bank acquisitions: Ukraine’s takeover wave

Author

Listed:
  • Muzaffarjon Ahunov

    (EBRD)

  • Leo Van Hove

    (Free University Brussels (VUB))

  • Marc Jegers

    (Free University Brussels (VUB))

Abstract

We investigate the impact of cross-border takeovers on the performance of target banks in Ukraine. We combine propensity score matching and a difference-in-difference methodology, checking for temporary unobservables. Acquirers mainly targeted large less-capitalised banks with average efficiency and profitability. After takeover, the cost efficiency of the acquired banks improved thanks to a decreased reliance on deposits but this did not result in higher profitability or higher loan market shares. Overall, our findings only tally piecemeal with the existing multi-country studies for transition economies.

Suggested Citation

  • Muzaffarjon Ahunov & Leo Van Hove & Marc Jegers, 2013. "Selection and hidden bias in cross-border bank acquisitions: Ukraine’s takeover wave," Working Papers 162, European Bank for Reconstruction and Development, Office of the Chief Economist.
    • Handle: RePEc:ebd:wpaper:162
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    References listed on IDEAS

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    Cited by:

    1. De Haas, Ralph & Djourelova, Milena & Nikolova, Elena, 2016. "The Great Recession and social preferences: Evidence from Ukraine," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 92-107.
    2. Slađana Savović, 2016. "The Post-Acquisition Performance Of Acquired Companies: Evidence From The Rebulic Of Serbia," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 61(209), pages 79-104, April - J.

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    More about this item

    Keywords

    cross-border takeovers; bank performance; selection bias; hidden bias;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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