Determinants of cross-border bank acquisitions in transition economies
LTReikšminiai žodžiai: Daugiapakopio mišrių efektų logito modelis; Daugiapakopis mišrių efektų logistinis modelis; Pereinamojo laikotarpio ekonomika; Pereinamojo laikotarpio ekonomikos; Tarpvalstybiniai bankų įsigijimai; Cross-border bank acquisitions; Multilevel mixed effects logit model; Transition economies.
ENWe analyse the microeconomic determinants of cross-border bank acquisitions in 11 transition economies over the period 1992–2006. We find that foreign banks target relatively large and efficient banks when they enter transition economies with weak institutions. This evidence provides support for the ‘market power’ hypothesis. However, when foreign banks enter more developed transition economies that have made progress in economic reform, they acquire less efficient banks. This result is in line with the efficiency hypothesis. We use a multilevel mixed effects logit model that allows us to explicitly incorporate the macroeconomic and institutional heterogeneity of the transition economies into our analysis. [From the publication]
