The Effects of Cross border Mergers and Acquisitions of Commercial Banks in European Union on the Shareholders Wealth

Združitve in prevzemi že od devedesetih let prejšnjega stoletja predstavljajo pomembno orodje, ki se ga banke in ostale finančne institucije poslužujejo z namenom njihove širitve. Spremenjene razmere evropskega bančnega gospodarstva, uvedba skupnega trga in valute ter spremenjeno regulatorno okolje, pa so nadalje vplivale tudi na čezmejne združitve in prevzeme v Evropski uniji. Namen naloge je testirati učinke čezmejne objave združitve in prevzema na ceno delnice ciljnih, kakor tudi prevzemnih bank, ki imajo posledično vpliv na premoženje lastnikov. Študijo smo izvedli z uporabo metodologije študije dogodka, natančneje s tržnim modelom. V nalogi smo natančneje obravnavali 32 komercialnih bank ali bančnih holdingov v Evropski uniji, Švici in Norveški, med leti 2003 in 2012, za katere smo izračunali nenormalne donose za 41 dnevno obdobje. Naše ugotovitve so podobne ugotovitvam drugih avtorjev, in sicer, da objava združitve in prevzema pozitivno vpliva na premoženje delničarjev ciljnih bank, medtem ko lastniki prevzemnih bank v tem procesu ne ustvarijo pozitivnih, kakor tudi ne negativnih nenormalnih donosov.Mergers and Acquisitions have been since the nineties an important tool for banks and other financial institutions for spreading their business. Moreover, changed conditions in European banking economy (for example introduction of common market and curency, changed regulatory environment) have also had effects on cross-border consolidation in European Union. Therefore, the purpose of our master thesis was to test announcement effects of cross-border mergers and acquistitions on target and acquired banks stock prices. To conduct our analysis we have empolyed event study methodology and market model. Consequently, we have calculated abnormal returns for 32 commercial banks or bank holdings between years 2003 in 2012 in the European Union, Switzerland and Norway. More precisely, abnormal returns have been calculated for the period of event window which has lasted 41 days. Our research results are extensively consistent with prior researches, which results have shown that the announcement of mergers and acquisitions have had a positive effects on shareholders of target banks, while on the other side effects on the shareholders of bidders are equal to zero