Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26417
Authors: 
Poghosyan, Tigran
de Haan, Jakob
Year of Publication: 
2008
Series/Report no.: 
CESifo working paper 2372
Abstract: 
We analyze the microeconomic determinants of cross-border bank acquisitions in 16 transition economies over the period 1996-2006. By using a latent class discrete choice model we explicitly incorporate the macroeconomic and institutional heterogeneity of the transition economies into our analysis. 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.
Subjects: 
Cross-border bank acquisitions
latent class logistic model
transition economie
JEL: 
G21
G34
E44
F21
Document Type: 
Working Paper

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