An Analysis between the Role of M&A on X-Efficiency Performance and the Effects of M&A on Market Structure of the European Banking Industry
Research Questions Within the year 1990 and 2001, significant changes in European banking industry conducive to local as well as cross-border mergers and acquisitions (M&A) happened. There are several literatures that cited and concluded a set of corporate motivational theories of the banking industry consolidation among industry players aside from compatible environment. Thus, both external and internal forces that drive M&A behavior between European banks are in place. In this study, however, our concern is the internal side of corporate motivation with emphasis on x-efficiency from M&A. Specifically, it will address the following two general questions: · What are the roles of x-efficiency in M&A decisions and results? · What are the impacts of x-efficiency in the European banking industry? · What are the implications of M&A with other theory such as neo-classical, monopoly and anti-trust issues? Research Goals The main objective of the paper is to prove whether M...