| Abstract [eng] |
SUMMARY 77 pages, 14 pictures, 21 charts, 97 references. The main purpose of this master thesis is to evaluate bank mergers and acquisitions effect on changes of bank value and efficiency in Central and Eastern Europe countries. Master thesis is comprised of three main sections – the analysis of scientific literature, the set up of the methodology, the research together with the results and conclusions, recommendations. The literature research covered review of the theoretical side of mergers and acquisitions, their methods and process flow as well as the concepts of banking sector and value of company. An overview was done of mergers and acquisitions generated value and positive output towards the efficiency of banks, the elements contributing to implementation of mergers and acquisitions. The methodology used for this master thesis empiric analysis consists of two workflows. Firstly, the evaluation of bank mergers and acquisitions effect on bank efficiency changes was conducted by selecting a set of financial indicators, calculating them and comparing the pre and post data using paired samle T-test. Secondly, the assessment of bank mergers and acquisitions effect on bank value changes was done by calculating the Cummulative Abnormal Returns of merged bank securities before and after the date of merger public announcement. The research was conducted by analyzing 12 bank merger and acquisition events in Central and Eastern Europe countries during 2015 - 2018. The analysis of 7 financial indicators covering profitability, capital adequacy and liquidity aspects of bank did not provide an unified answer whether mergers and acquisitions have a positive effect on bank efficiency. However, the research does show statistical significant changes in return on equity, net profit margin and capital adequacy. The analysis on abnormal returns of bank securities in the event of public announcement of bank merger and acquisition did not provide a unified answer whether mergers and acquistions positively contribute to bank value change. Although single reviewed period of 30 days after the public announcement has been evalauted as statistically significant with a positive change of 5,26 %. The research conclusion and recommendation part summarizes the main points of literature review as well as the analysis part of the thesis. It is suggested that further research should look into merger and acquisition effects on bank capital adequacy and liquidity. The results of bank abnormal returns advocates for further research on positive long term value return as well as positive short term return just before the public announcement of the merger. |
