Sergio Sanfilippo Azofra

Determinants of premiums paid in European banking mergers and acquisitions

This study is aimed at analysing the determinants of premiums paid in European banking mergers and acquisitions (M&A). This analysis will highlight the reasons for the wave of bank M&A during the 1990s. The empirical study analyses a sample of 81 European banking M&A from 1994 to 2000. The results show that there are different variables that make the target bank attractive to the acquirer, such as the percentage of equity, the percentage of loans and financial profitability. However, geographical and product diversification have not been considered by the acquirers as a reason to pay higher premiums.

Firms’ Performance Under Different Bankruptcy Systems: A Europe–USA Empirical Analysis

This study empirically analyses the effect that the bankruptcy law has on firms’ performance based on its financial situation. To do this, we considered the different types of efficiency and their influence on firms’ value. The study was carried out for Germany, Spain, the United States, France and the United Kingdom. We applied System‐GMM estimation to dynamic panel data. The main results show that under creditor‐oriented systems, there is a decrease in the value of both financially distressed firms and those filing for bankruptcy.

Size, Target Performance and European Bank Mergers and Acquisitions

During the 1990s, the banking sector experienced an important consolidation process in most developed countries, where mergers and acquisitions (M&As) between credit institutions reached unprecedented levels. Financial deregulation and technological progress have played an important role in this process (Berger, Demsetz & Strahan 1999). These, among other factors, may have intensified the synergy derived from size and facilitated an improvement in the management of the acquired institutions. In order to evaluate the importance of these two factors, we carry out a multinomial logit analysis of the characteristics of continental European financial institutions prior to their participation in merger and/or acquisition operations between 1995 and 2001. Our results demonstrate that size is an important factor in mergers and acquisitions, but it is not clear that economies of scale are sought with these types of deals. In turn, improving the management of the acquired institutions has played an important role in this process.

Consecuencias de las Fusiones y Adquisiciones Entre las Entidades de Crédito de Europa Continental

RESUMEN Aunque tradicionalmente no se ha demostrado que las fusiones y adquisiciones entre entidades de crédito generen beneficios significativos, los cambios que han tenido lugar en los sistemas financieros han alterado las condiciones en las que se desarrollan estas operaciones, incrementando sus ganancias potenciales. En este sentido, realizamos un análisis del efecto que las fusiones y adquisiciones han tenido recientemente en la rentabilidad, los costes, la eficiencia y la cuota de mercado de las entidades de crédito de la Europa Continental durante el período comprendido entre 1993 y 2001 empleando una metodología de datos de panel dinámicos GMM. Los resultados obtenidos muestran moderados incrementos en la rentabilidad de las entidades adquirentes y las que participan en fusiones y únicamente ciertas reducciones de costes en las entidades adquiridas, en ambos casos más visibles a largo plazo, mientras que la cuota de mercado sólo mejoraría en las adquirentes.

UNA APROXIMACIÓN TEÓRICA A LA SOLUCIÓN DE LOS PROBLEMAS DE INSOLVENCIA EMPRESARIAL

Las modificaciones que se estan produciendo en los ultimos anos en las legislaciones sobre insolvencias en los paises mas desarrollados, y las diferencias que aun persisten entre ellas, ponen de manifiesto la ausencia de un modelo teorico de referencia sobre cual es la estructura optima que debe tener un sistema concursal. De esta forma, este trabajo trata tanto de analizar el esquema de funcionamiento de los actuales procedimientos como de sintetizar las principales propuestas teoricas realizadas, que si bien no han sido aplicadas en ninguna de las reformas legislativas realizadas, pueden aportar un nuevo horizonte sin explorar en materia de solucion de los problemas de insolvencia empresarial. En este sentido, se trata de dar respuesta a la cuestion de si existe un sistema concursal optimo aplicable universalmente, o este puede venir condicionado por el entorno institucional que forma parte de su ambito de aplicacion. / The changes in bankruptcy laws of the most developed countries in the last years, and the differences that remains between them until now, show the absence of a theoretic procedure that allows researchers and practitioners to have an optimal bankruptcy procedure as a benchmark in their studies. In this paper we analyze the scheme of the main procedures in force and we try to summarize the main theoretic proposals which have not been used in the recent reforms but could show a new perspective on the topic of resolution of financial distress. In this way, we try to answer the question of if there is an optimal procedure useful around the world or if we can take into account the differences in the institutional environment.

Banking Performance in Domestic and Cross-Border Acquisitions

During the 1990s, the banking sector experienced an unprecedented process of consolidation in most developed countries, in which mergers and acquisitions between credit institutions reached previously unknown levels. Bank concentration became relevant in the 1980s in the USA, becoming a world-wide phenomenon with increasing intensity during the 1990s. In fact, the number of mergers and acquisitions (M&As) among financial institutions in Europe rose from 330 in 1990 to 1,072 in 2000, and those carried out by banks rose from 97 in 1990 to 269 in 2000 (Thomson Financial, 2001).

Creditor Rights and the Bank Lending Channel of Monetary Policy

This article analyzes how creditor rights influence the loan supply reaction of banks to monetary policy through the bank lending channel. Additionally, we test whether the influence of creditor rights on lending is different before and after the crisis. Using a sample of 1096 listed banks from 36 countries between 2003 and 2015, we find that creditor rights do not directly influence loan supply, neither before nor after the crisis, but they play an important role during monetary shocks. In this regard, the bank lending channel of monetary policy is less effective in countries with stronger creditor rights.

El riesgo soberano y sus efectos asimétricos sobre la transmisión de la política monetaria.

The objective of this article is to analyze the impact that the sovereign debt crisis has had in the euro zone. Furthermore, this article examines the effects of sovereign risk on the monetary policy transmission in the euro zone through bank credit. The outbreak of the sovereign debt crisis in 2010 led to growing concerns about sovereign risk, especially in the countries of the European periphery (Spain, Portugal, Ireland, Italy and Greece). Greater sovereign risk has worsened the financing conditions of the banking sector, leading to asymmetries in the monetary transmission process across countries.

Managerial Response to Mutual Fund Performance in the Spanish Market: An Agency Approach

The mutual fund market has grown so much over the last decade that we now have a real need for a criterion to evaluate portfolio managers. The mutual fund environment is characterized by asymmetric information, which makes analysing performance difficult, and promotes conflicts of interests about the use of market signals and control mechanisms to minimize agency costs.

Analysis of Mutual Fund Demand in the Spanish Market

The globalization of today’s economy has led to a renewed interest in financial systems that can explicate the differences in the evolution of market-based and bank-based systems.1 In market-based systems, a legal separation is made between the typical commercial banking activity of resource-building, loan-granting and credit risk, and the development of activities such as stock-brokerage operations, wealth management, and assessing takeovers and acquisitions, which are carried out by other entities known as business or investment banks.