Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/4344
Title: Domestic banking sector development and cross border mergers and acquisitions in Africa
Authors: Agbloyor, E.K.,
Abor, J.,
Adjasi, C.K.D,
Yawson, A.
Keywords: Banks; Cross border mergers and acquisitions; Africa
Issue Date: 2012
Citation: Domestic banking sector development and cross border mergers and acquisitions in Africa, Review of Development Finance,pp 32-42
Abstract: Recently, economists have started taking a closer look at cross border mergers and acquisitions (M&As) due to its phenomenal rise in the past two decades. This study investigates the relation between banking sector development and cross M&As in Africa. Our sample consists of 11 African countries with data covering the period, 1993–2008. We use a Baltagi panel instrumental variable Error Component Two Stage Least Squares (EC2SLS) estimator with the Baltagi-Chang estimators of the variance components to deal with endogeneity. The results of the study indicate that banking sector development promotes cross border M&A activity in Africa. We also document evidence suggesting that cross border M&A activity drives banking sector development in Africa. Overall, our evidence suggests a two-way causation between banking sector development and cross border M&As.
URI: http://hdl.handle.net/123456789/4344
Appears in Collections:Department of Banking and Finance

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