The Effect of Ownership Transformations on the Financial Situation of Large Czech Banks
| Authors | |
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| Year of publication | 2013 |
| Type | Article in Proceedings |
| Conference | Conference Proceedings of the 6th International Conference "The Changing Economic Landscape: Issues, Implications and Policy Options" |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | bank transformation; acquisition; privatization; measuring of economic effects of acquisition; regression and correlation analyses; |
| Description | The processes of mergers and acquisitions in the banking sector, that took place after the dissolution of Czechoslovakia peaked between 1998 and 2001, when large banks were privatised. Finding suitable investors and selling out the state shares is supposed to bring a higher efficiency and a better financial stability. To prove a positive effect of acquisitions, we analysed the development of selected economic indicators two years before and three years after acquisitions in three large banks. Regression models of development graphs of indicators as well as correlation coefficients confirmed a positive development after acquisitions in two banks. The development was not so clear in one of the banks as the rapid increase in the ROAE indicator turned over in the second year after the acquisition. It appears that the entry of foreign investors in the Czech banking sector brought improvement of the financial situation and efficiency of large banks soon after the acquisitions. These banks owned over 58% of assets in the banking sector in the monitored period. |
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