Journal of Finance and Investment Analysis

Mergers and Acquisitions of Cooperative Banks. Before and After a Takeover. A Financial Analysis.

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  • Abstract

     

    The purpose of this paper is to present and study the evaluation of mergers and acquisitions of cooperative banks. In this paper we present and afterwards we calculate Financial Ratios that extract from Financial Cash Flow Statements. The purpose is to show a methodology that help us to evaluate the profitability, efficiency and insolvency before and if any after mergers and acquisitions in the Cooperative Banks, using mainly Financial Cash Flow Statements. So, we evaluate the Cooperative Bank of Drama and the Cooperative Bank of Evros three years before the acquisition and then we evaluate four years after the acquisition the Cooperative Bank of Drama which is the bidder and remain bank. This acquisition was completed in recent years and the purpose was for the acquiring cooperative bank of Drama with the completion of the acquisition and the full integration of the acquired bank of Evros, to become more attractive in relation to its competitors mainly in terms of profitability, efficiency and to improve its insolvency ratio, but in the end this did not happen. We start our study with the introduction and we go on with the literature review, the methodology, the results, the conclusions and the references.

     

    JEL classification numbers: G21, G33, G34.

    Keywords: Cooperative Banks, Mergers & Acquisitions, Cash Flows Ratio, Profitability, Insolvency.