Determinants of domestic and cross-border bank M&As in European countries

Which bank characteristics make a target more attractive to the acquirer in the banking sector? This thesis answers this question by analyzing the determinants of bank acquisitions both within and across countries in EU countries over the period 2001-2010. The overall results indicate that, relative to banks that were involved in cross-border bank M&As, target were more profitable. The results suggest that banks with high profitability have a higher probability to be acquired by a foreign acquirer in a bank M&A. In particular, and contrary to what previous studies found, target bank size does not show a significant effect on the probability of being a target in both domestic and cross-border M&As.