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In the context of increasing consolidation in the banking industry, this research examined one of the motives for bank acquisitions and the kinds of acquisitions made by banking firms. The effect of ownership concentration was tested on the absolute level of bank acquisitions and the average degree of geographic‐market overlap of these acquisitions. In a sample of 156 banking firms, banks featuring dispersed ownership were found to acquire other banks with less market‐overlap than did banking firms with concentrated ownership. However, ownership concentration was not a significant predictor of the absolute level of merger activity. Implications of these differences in acquisition strategies are explored.

ASEAN region has emerged as a major hotspot for banking mergers and acquisitions (M&A) in Asia. This paper aims to examine the determinants of acquisitions for 47 acquired banks and 33 acquiring banks in ASEAN from 2003 to 2011 by applying matching strategy.

Three binary logistic regressions are estimated in the study to identify the determinants of acquisitions in the ASEAN banking industry. Furthermore, the paper examines the ex ante bank-specific and country-specific characteristics of acquiring and acquired banks which motivate bank acquisitions.

The division of the sample into sub-samples reflects significant changes in the determinants of the likelihood of being acquired over different time periods. In the normal period prior to the financial crises, acquired banks are also found to have greater loan activities. Asset quality and liquidity played important roles in determining the likelihood of being acquired in the period after the onset of the 2007 global financial crisis and the European sovereign debt crisis. Larger banks with higher growth and greater profitability are more likely to engage in acquisitions as acquiring banks rather than as acquired banks. The study indicates that financial crises bring about a change in the determinants of bank acquisitions.

The results for the bank-specific determinants are consistent with the growth-resource and inefficient management hypotheses. It is obvious that the involvement of ASEAN banks in acquisitions is strongly motivated by the pursuit of growth, consistent with the rapid economic growth in the region.

The study identifies the bank-specific and country-specific characteristics of acquiring and acquired banks which influence their involvement in M&A. The uniqueness of this paper lies in the applied methodology on matching strategy.

The present paper aims to examine the relationship between bank's characteristics and market characteristics and the probability of acquisition in the Greek banking industry.

Logistic regression is used to examine a sample of 24 banks, 9 of which were acquired between 1998 and 2002.

It is found that profit and cost efficiency, liquidity and capital strength do not seem to have an impact on the acquisition likelihood. Market share in terms of deposits, the number of branches, the annual growth of bank's total assets and the size of banks are negatively related to the acquisition likelihood. From the three market characteristics that were examined, the concentration of the five largest banks, the mean return on average assets of the industry and the average total assets growth, only the first one was found to have a negative and statistically significant impact on the acquisition likelihood.

Variables related to management incentives and corporate governance, which may have an impact on the acquisition likelihood, were not available and therefore have not been considered. It is hoped that future research will improve upon this.

The results could be of interest to bank managers of potential targets that would like to know whether their bank is developing a profile similar to the typical target. Furthermore, knowledge of bank's and market characteristics that increase the probability of acquisition can be of particular interest to policy makers.

The investigation of the characteristics that affect the likelihood that a bank will be acquired has been largely ignored with most studies in banks M&As using event study, operating performance or X‐efficiency methodology to examine the effect of M&As on the stock prices or the performance of banks. Furthermore, the limited studies that have examined the characteristics of acquired banks have focused on the US market. The present paper adds to the literature by examining the Greek banking sector, which is different from the US one in many aspects.

The purpose of this chapter is to reflect the impact of mergers and acquisitions processes on performance of Islamic banking industry in the United Kingdom through studying within.

The present research uses explanatory approach in order to examine the research problems, methodology used in the research is quantitative methods through calculating the long-term share prices performance of the UK Islamic banks’ sample. First, the researchers use the control Islamic bank in the event-time approach. The researchers calculate annual abnormal returns using the buy-and-hold abnormal return (BHAR) method over a period of five years, counting from the quarter of a year when the transaction is said to be effective.

The research findings found that there are significant differences in the Islamic mergers and acquisitions post-long-run performance of the UK Islamic banks to the control the crises that face the United Kingdom from 2007 to 2010. However, the acquiring Islamic bank in high-tech industries had a negative effect on their long-term performance.

The present research has been applied for the Islamic banking industry in the United Kingdom after the Western Europe industry from 2007 to 2010.

The main implementations of the present research is valuing UK banks carried out the Islamic mergers and acquisitions of a broad range of management disciplines encompassing the financial, strategic, behavioral, operational, and cross-cultural aspects of this challenging and high-risk activity.

The Islamic mergers and acquisitions have placed a significant amount of value added on the motivation of large banks for engaging in banking mergers and acquisitions’ transactions.

This chapter examines the effect of creditors’ monitoring role on the profitability of firm acquisitions. We use the shares retained by the lead arranger of a syndicated loan as a proxy for monitoring level. We find that acquirer announcement returns are positively related to the shares retained by the lead arranger. The effect of the lead arranger’s shares on the acquirer’s return becomes pronounced in cash acquisition deals, and when there exist financial covenants. Our results suggest that lead arrangers are important not only for monitoring loans but also for successful acquisitions by borrowers. An important policy implication of the main findings of this chapter on bank monitoring is that policy makers should design financial covenants to improve the efficiency of monitoring activities by lead arranging banks in syndicated bank loan deals.

This paper investigates how a firm's human resource capability can affect the deployment and effectiveness of corporate mergers and acquisitions strategy.

Mergers and acquisitions (M&A) is treated as a long‐term strategic orientation based on human resource advantage rather than a tactic to pursue short‐term goals. Using a sample of 267 US banking firms, the main and interaction effects of M&A intensity, HR capability, and in‐state propensity on four firm performance measures were examined.

The findings confirm that banking M&A could be very effective when the firm had high HR capability. Evidence was also found that HR capability had a direct impact on firm performance. Although in‐state M&A strategy was in general superior to out‐of‐state M&A strategy, a firm with excellent HR capability might narrow the performance difference between in‐state and out‐of‐state M&A.

An obvious drawback of using this sample of banking firms is that it raises questions about the generalizability of these findings to smaller financial firms and firms in other industries. This study considers firms having at least one M&A over a three‐year period, so we should not generalize our findings to those firms preferring to use internal growth strategies or greenfield start‐ups.

The main message of this paper is that human resource capability is critical for M&A strategy to be effective.

By extending previous investigations which showed that M&A strategy and HR capacity should be independently treated, this study highlights the critical role of internal HR capability in performance implications of M&A strategy.

This paper aims to examine how international banking groups manage their branding in the context of successive mergers and acquisitions. It seeks to review of a number of case histories in order to show that banking companies tend to evolve a multi‐tiered system for absorbing and rebranding acquisitions and it also seeks to present a general framework to guide future research and practice.

The banking industry has been undergoing major consolidation in recent years, with a number of global players emerging through successive mergers and acquisitions. These transactions vary in scale and location, from major mergers of large, equal‐sized international entities to acquisitions of smaller, local businesses in various countries all around the world. This paper brings together the literature on mergers and acquisitions, which mostly comes from economics and finance, with the marketing literature on branding and rebranding, to create a framework to help us to understand the management challenge of rebranding bank brands in this context. Citigroup and Crédit Agricole are used as a preliminary test of this framework.

This analysis suggests that the branding problem varies according to the size and international status of the acquisitive bank. Very large banks with international brands such as Citigroup tend to follow a branded house strategy where they impose their master brand on all acquisitions resulting in a further enhancement of scale and brand strength. However, this general strategy conceals a more complex, multi‐tiered approach with different types and sizes of acquisitions being rebranded in different ways. Regional players such as Crédit Agricole tend to opt for a house of brands strategy where their acquired companies retain their own name and brand franchise in local markets.

The framework presented here is entirely new and requires further testing. The evidence supplied here is interesting but preliminary and requires further validation.

Most banking companies nowadays become involved in mergers and acquisitions at some stage, and face the task of realigning their brands in the aftermath of these transactions. This paper provides a systematic framework backed up by empirical evidence to help them to make these decisions.

The paper addresses a critically important strategic issue that has not been addressed in any detail in the marketing literature. The paper provides preliminary research evidence and a framework to suggest hypotheses for further research.

We consider conditions under which firms hire an intermediary advisor in acquisition deals. Although acquirers pay large advisory fees to investment banks for their assistance in acquisitions, we know little about the conditions under which acquirers form a relationship with an investment bank for an acquisition deal. Specifically, we examine the role of overall acquisition experience, acquisition experience specific to the target’s industry, prior relationship-specific experience, and deal size in relationship formation and continuation. We test their hypotheses using a dataset of US-based acquirers and targets between 1991 and 2015. Our findings provide nuanced insights into the role of acquisition experience for acquirer–investment bank pairing up on acquisition deals.

Advisors play a key role in the mergers and acquisitions (M&A) process, but research to date has rarely focused on how their influence impacts these transactions. The present chapter takes stock of the present literature on M&A advisors from finance, economics, and management in order to integrate the currently diverging research traditions into a coherent framework. The current research has focused on proximal acquisition outcomes, like acquisition premiums or expected performance in the form of cumulative abnormal returns, but there is limited theoretical understanding of the advisors impact on the post-acquisition period. Moreover, while the role of advisor reputation has been highlighted on both the management and finance literatures as an important aspect of the role advisors play in the M&A process, there seems to be much to be addressed. Furthermore, and perhaps most importantly, the nature of the relationship between the advisor and the acquirer or target presents challenges to researchers where the advisor acts both as a provider of expertise in the M&A process, but may be simply acting on their own best interest. The new framework that the authors present here provides management scholars with a roadmap into a cohesive research agenda that can inform our theoretical understanding of the role of M&A advisors.

This chapter looks at the role the investment banks play in the acquisition process. The existing literature presents a conflicting account of the banks' advice on the performance of the acquiring firm. By distinguishing between two different types of investment banks – bulge bracket and boutique firms – the chapter shows that the acquirer's performance may be a function of the interaction between the acquirer's choice of the bank's type and the acquirer's experience. More specifically, it appears that while the inexperienced acquirers can benefit from the deeper acquisition expertise of the boutique banks, the experienced acquirers can benefit more from the broader information search capabilities of the bulge bracket banks.