B unne -Ki chmai , Thomas M.; Bu gs alle , Johann
A icle
Explo ing he success o egional bank me ge s: Financial
e sus non- inancial pe o mance
Ge man Economic Re iew (GER)
P o ided in Coope a ion wi h:
Ve ein ü Socialpoli ik / Ge man Economic Associa ion
Sugges ed Ci a ion: B unne -Ki chmai , Thomas M.; Bu gs alle , Johann (2025) : Explo ing he success
o egional bank me ge s: Financial e sus non- inancial pe o mance, Ge man Economic Re iew
(GER), ISSN 1468-0475, De G uy e , Be lin, Vol. 26, Iss. 3, pp. 267-304,
h ps://doi.o g/10.1515/ge -2024-0068
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/331956
S anda d-Nu zungsbedingungen:
Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen
Zwecken und zum P i a geb auch gespeiche und kopie we den.
Sie dü en die Dokumen e nich ü ö en liche ode komme zielle
Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich
machen, e eiben ode ande wei ig nu zen.
So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen
(insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en,
gel en abweichend on diesen Nu zungsbedingungen die in de do
genann en Lizenz gewäh en Nu zungs ech e.
Te ms o use:
Documen s in EconS o may be sa ed and copied o you pe sonal
and schola ly pu poses.
You a e no o copy documen s o public o comme cial pu poses, o
exhibi he documen s publicly, o make hem publicly a ailable on he
in e ne , o o dis ibu e o o he wise use he documen s in public.
I he documen s ha e been made a ailable unde an Open Con en
Licence (especially C ea i e Commons Licences), you may exe cise
u he usage igh s as speci ied in he indica ed licence.
h ps://c ea i ecommons.o g/licenses/by/4.0/
ge 2025; 26(3): 267–304
Thomas M. B unne -Ki chmai and Johann Bu gs alle *
Explo ing he Success o Regional Bank
Me ge s: Financial Ve sus Non-Financial
Pe o mance
h ps://doi.o g/10.1515/ge -2024-0068
Recei ed July 8, 2024; accep ed Feb ua y 15, 2025; published online Ma ch 11, 2025
Abs ac :This s udy examines e ec s o me ge s be ween Aus ian banks om
2005 o 2018. Using ma ching echniques, we assess consequences o bank p o -
i abili yandfinanciale iciency,aswellas heimpac onloang ow handameasu e
o social e iciency. Significan e ec s a e obse ed in nai e compa isons o non-
me ging banks, which almos en i ely disappea a e balancing wi h bank-le el
and en i onmen al ac o s. This indica es ha he a e age bank me ge is nei he
alue-dec easing no alue-enhancing. Howe e , a ia ion in indi idual me ge
success is huge and associa ed wi h se e al o ganiza ional and s a egic ac o s,
such as pu sued cu s in pe sonnel expenses o changes in ma ke powe .
Keywo ds: bank me ge s; sa ings banks; coope a i e banks; bank pe o mance;
me ge success; ma ching echnique
JEL Classi ica ion: G21; G34; R51
1 In oduc ion
Fo many yea s, he banking sys em has expe ienced in ense consolida ion
d i en by echnological, financial, and egula o y changes (DeYoung, E ano , and
Molyneux 2009). The high numbe o me ge s has spa ked he in e es o aca-
demics, who examine which banks a e me ging, why banks a e me ging, and he
*Co esponding au ho : Johann Bu gs alle , Johannes Keple Uni e si y, Ins i u e o Finance,
Al enbe ge S asse 69, 4040 Linz, Aus ia, E-mail: [email p o ec ed].
h ps://o cid.o g/0000-0002-8753-9468
Thomas M. B unne -Ki chmai , Johannes Keple Uni e si y, Ins i u e o Finance, Al enbe ge S asse
69, 4040 Linz, Aus ia, E-mail: Thomas.B unne -[email p o ec ed].
h ps://o cid.o g/0000-0003-2918-0212
Open Access. ©2025 he au ho (s), published by De G uy e . This wo k is licensed unde he C ea i e
Commons A ibu ion 4.0 In e na ional License.
268 —T. M. B unne -Ki chmai and J. Bu gs alle
o e all success and specific ac o s con ibu ing o success ul bank me ge s. How-
e e , he exis ing e idence on hese ques ions is inconclusi e (Beh and Heid 2011;
Cocco ese and Fe i 2020), and he esul s la gely depend on he coun y ana-
lyzed, he ime pe iod unde in es iga ion, o he ype o bank o in e es . Despi e
ex ensi e esea ch in his a ea, se e al esea ch gaps emain. Fi s , al hough he
U.S. ma ke has been ex ensi ely in es iga ed, s udies on Eu opean bank me ge s
emainlimi ed.Second, heexis ingli e a u ep edominan ly ocusesonexamining
he impac o me ge s on p ofi abili y and e iciency ( om a sha eholde pe spec-
i e), assuming ha ( ex book) mo i es, such as economies o scale and he desi e
o g ow and inc ease ma ke powe , d i e me ge ac i i y. Howe e , many banking
ma ke s p ima ily expe ience me ge s be ween small and egionally close banks
o which he abo e p esump ion may no apply. In such cases, he mo e appa en
mo i es may s em om conce ns abou sus ainabili y owing o declining p ofi abil-
i y, inc easing egula o y equi emen s and cos s, e ol ing cus ome demand, and
heigh enedcompe i ion om non-bank ins i u ions (B aun, Pa ise,and on Ni zsch
2013;Huh ilainen, Saas amoinen, and Suhonen 2022;Kobayashi and B eme 2022;
Thompson 2019). In addi ion, egional banks may eel p essu ed by banking and
poli ical au ho i ies, as he e is widesp ead opinion ha u he consolida ion is
needed o main ain o imp o e he e iciency and s abili y o he banking sys-
em (Ca dillo, Gallo, and Gua ino 2021;Figuei as e al. 2021). Consequen ly, egional
banks may be o ced o eo ganize o me ge (Kobayashi and B eme 2022). These
egional bank me ge s, which di e om he mo e equen ly examined me g-
e s o la ge o lis ed banks, wa an u he in es iga ion and de ailed analysis.
Thi d, many egional banks a e coope a i e o sa ings banks (he ea e e e ed
o as s akeholde banks), which do no only ocus on sha eholde in e es s (i.e.
inc easing bank alue by inc easing sales o dec easing cos s), bu a emp o bal-
ance he in e es s o a wide g oup o s akeholde s (Kalmi 2017). Fu he analysis is
equi ed o unde s and me ge s o s akeholde banks, including hei non-financial
pe o mance. Finally, he selec i i y p oblem emains a p ominen me hodological
challenge in nume ous s udies, and equi es close a en ion and sc u iny (Beh
and Heid 2011;Egge and Hahn 2010).
To add ess hese issues, we examine he Aus ian ma ke o bank me ge s.
We aim o de e mine he success o hese me ge s by analyzing hei financial and
non-financialpe o mance,while also in es iga ing he main d i e s o me ge suc-
cess. The Aus ian banking ma ke is o pa icula in e es because o he significan
p esence o small s akeholde -o ien ed banks wi h a egional ma ke dema ca ion,
which p esen s a unique con ex o in es iga ing ou esea ch ques ions. Ou final
analysis ocused on 121 bank me ge s ha occu ed be ween 2005 and 2018. We
examine fi e indica o s o me ge success: he e u n on asse s (ROA), he cos -
income a io (CIR), he g ow h a e o loans o non-financial cus ome s, financial
Explo ing he Success o Regional Bank Me ge s —269
e iciency, and a measu e o social e iciency. E iciency sco es we e de i ed using
Da a En elopmen Analysis (DEA). To add ess he selec i i y p oblem, we employed
ma ching analysis using en opy balancing. Me ge a ge s a e ound o pe o m
wo se han acqui e s ex an e wi h espec o ROA, CIR, and loan g ow h. In a nai e
compa ison o me ged en i ies (acqui e and a ge (s) combined) wi h non-me ging
banks om one yea be o e o h ee yea s a e he me ge , we obse e imme-
dia e nega i e consequences o he a e age me ge ac oss all fi e indica o s o
me ge success in he me ging yea . Howe e , h ee yea s a e consolida ion, he
a e age me ge seems success ul wi h ega d o ROA, CIR, and bo h e iciency mea-
su es. Ne e heless, when ma ching echniques a e employed, significan a e age
me ge success emains e iden only in e ms o social e iciency ( hough only a
he 10 % le el), highligh ing he necessi y o conside ing he specific objec i es o
s akeholde banks h ough pe o mance analysis. Rela i e o he con ol g oup,
me ging banks close mo e b anches and cu cos s mo e in he pos -me ge pe iod,
which, among o he ac o s, also helps dissec he a ia ion in indi idual me ge
success.
Ou s udy con ibu es subs an ially o he li e a u e on bank me ge s h ough
a ious a enues. Fi s , we p o ide new e idence by applying ecen da a o he
Aus ian ma ke o bank me ge s. The da a used in p e ious esea ch (Egge and
Hahn 2010;Hahn 2007) ex end only un il 2002, al hough he banking en i onmen
has unde gone significan changes since hen (Gi a done and Ricci 2023). Fu he -
mo e, he Aus ian banking indus y is s ill deemed o e banked wi h small, locally
ope a ing, and unp ofi able en i ies. An analysis o consolida ion aken place so
hus a p o ides an ou look on he po en ial esul s o me ge s o be expec ed in
he u u e. Second, we ex end he analysis o me ge ou comes beyond p ofi abili y
and financial e iciency and inco po a e a pe o mance indica o ha acili a es he
unde s anding o s akeholde banks. Gi en ha hese banks ope a e wi h a double
bo om line, i is pe inen o measu e hei pe o mance ela i e o an objec i e
unc ion ha encompasses nonp ofi objec i es. Thus, we acknowledge ha bank
me ge s may ha e subs an ial consequences o egional economies and socie ies.
Finally, we ollowed p e ious esea ch calling o sophis ica ed app oaches, using
e iciency sco es om on ie es ima ion and ma ching me hods o accoun o
selec i i y bias and con ounding en i onmen al ac o s.
The emainde o his pape is o ganized as ollows. Sec ion 2 e iews he
li e a u e ocusing on me ge s o egional banks in Eu opean ma ke s. Sec ion 3
ou lines he da a and me hodology employed and Sec ion 4 p esen s he esul s. In
Sec ion 5, we summa ize and discuss he findings, iden i y limi a ions, highligh ou
con ibu ions, and p opose u u e a enues o esea ch.
270 —T. M. B unne -Ki chmai and J. Bu gs alle
2 Li e a u e Re iew
2.1 E ec s o Me ge s on Bank Pe o mance
M&As’ success in he banking indus y has been o academic in e es o decades.
Many empi ical esul s ha e been gene a ed since and p o ide mixed e idence
ega ding success and de e minan s o success (see he e iews by Amel e al. 2004;
DeYoung, E ano , and Molyneux 2009;Kola ic and Schie eck 2014). App oaching
hese ques ions, he fi s challenge is o define ‘M&A pe o mance’ (Zollo and Meie
2008, 55), e ealing a wide ange o me hods. Kola ic and Schie eck (2014), o
example, ca ego ize he mos p ominen ways o measu e success in o analyses
o sha eholde eac ions (e en s udies o s ock e u ns), bank e iciency (p e-
e ably on ie me hods), and ope a ing (accoun ing) pe o mance (pe o mance
s udies).
Due o he egula o y and s uc u al di e ences be ween he U.S. and Eu o-
pean banking ma ke s, we ocus on he success o Eu opean bank me ge s. The
co esponding esul s a e inconclusi e and highly sensi i e o he ime pe iod
unde in es iga ion (Kola ic and Schie eck 2014) and he geog aphical ocus o he
s udy. A pan-Eu opean sample o bank me ge s has, o example, been analyzed
by Hagendo and Keasey (2009), who find small pe o mance gains in he pos -
me ge pe iod, and p o ide e idence ha banks ollow a cos -cu ing s a egy in
he yea s ollowing a me ge . Many o he espec i e (c oss-coun y) s udies, such as
Ismail, Da idson, and F ank (2009),Lozano-Vi as e al. (2011),andGala io is e al.
(2021), co e only la ge, mos ly lis ed banks, which can ha dly be compa ed o he
s akeholde -o ien ed egional banks in his s udy.
Me ge analyseso indi idual coun ies wi h a significan sha e o s akeholde -
o ien ed banks a e mo e di ec ly ele an . Fo example, o sa ings banks in Spain,
Be nad, Fuen elsaz, and Gómez (2013) epo significan pos -me ge p ofi abili y
inc eases. Mo e ecen ly, Cocco ese and Fe i (2020) ound no a e age e iciency
gains om he me ge s o I alian coope a i e banks; only banks me ging o he
hi d ime (a leas ) we e epo ed o be able o imp o e e iciency. Fo he Ge -
man ma ke , he esul s end o be neu al and po en ially posi i e. Fo a sample
o coope a i e banks, Lang and Welzel (1999) obse ed e iciency gains i (bu only
i ) b anches closed in he wake o he me ge . Koe e (2008) uses p ofi and cos
e iciency es ima es o Ge man sa ings and coope a i e banks. The esul s indi-
ca e ha e e y second me ge is a success, whe eby, “on a e age, p ofi e iciency
imp o emen sa ela ge han hose o cos e iciency” (Koe e 2008,258).Aue bach
(2009) employs a dynamic panel eg ession me hodology o examine he impac
o bank me ge s on sa ings and coope a i e banks. Focussing on cos -income
a ios and p ofi abili y o assess pos -me ge e ec s, he au ho concludes ha , on
Explo ing he Success o Regional Bank Me ge s —271
a e age, he cos -income a io is highe o me ging banks in he yea o he me ge
han o non-me ging banks. Howe e , his a io g adually imp o es o e ime, and
by he hi d and ou h yea s ollowing he me ge , he a e age cos -income a io
o me ging banks su passes ha o non-me ging banks. Rega ding me ge s’ p o -
i abili y e ec s, Aue bach (2009) epo s inconclusi e esul s. Beh and Heid (2011)
employ a ma ching s a egy and find a neu al, po en ially posi i e e ec o Ge man
bank me ge s on p ofi abili y ( e u n on asse s) and cos e iciency (cos -income
a io).
Finally, he Aus ian ma ke was analyzed by Hahn (2007), who epo ed signi -
ican gains in p oduc i e e iciency o me ge s be ween 1996 and 2002. Simila ly,
he esul s o Egge and Hahn (2010) indica e he posi i e e ec s o bank me ge s
on banking pe o mance, especially cos pe o mance.
Empi ical findings on he ac o s associa ed wi h me ge success a e also
di e se. Following Kola ic and Schie eck (2014), he de e minan s can be ca ego-
ized in o he cha ac e is ics o pa ne companies, ansac ion cha ac e is ics,
and en i onmen al ac o s. Koe e (2008) obse es ha la ge di e ences in p e-
me ge e iciencyindica emo esuccess ul me ge s. The ela i ely highe e iciency
o he acqui e signals ha managemen skills and cos -sa ing po en ial a e mo e
easily iden ified i he a ge ’s posi ion is ela i ely wo se ex an e. Likewise, Aue -
bach (2009) p oposes ha me ge s wi h small banks wi h weak financial p ofiles
a e pa icula ly success ul. Kola ic and Schie eck (2014) also lis me ge expe i-
ence among success-d i ing ac o s, which is somewha confi med by Cocco ese
and Fe i (2020).Lang and Welzel (1999), as men ioned abo e, a gue ha , in hei
sample, e iciency gains only eme ge i b anches a e closed. Many s udies, such as
D ees, Keise s, and Schie eck (2006),B aun, Pa ise, and on Ni zsch (2013),andGin-
dele e al. (2019), ha e highligh ed he impo ance o ‘so ’ ac o s o me ge s o be
success ul. In p ac ice, me ge s o en su e om a lack o clea communica ion and
s a egy o an unde app ecia ion o necessa y e o s and cos s, such as echnical
and pe sonnel in eg a ion o cus ome e en ion.
The a ia ion in he esul s o me ge success migh be due o coun y-specific
di e ences and changes o e ime, bu me hodological p oblems also play a ole.
Me ging banks non- andomly sel -selec in o ea men o (pe haps unobse ed,
s a egic) easons, and no accoun ing o his, o example, by compa ing wi h he
a e age non-me ging bank, may lead o simul anei y bias in he esul s (Egge and
Hahn 2010). In e es ingly, only a ew s udies ha e used ma ching me hods, such
as Beh and Heid (2011) and Egge and Hahn (2010). In addi ion, Yu (2019) used
p opensi y sco e ma ching (PSM) o examine mo e han 2000 c edi union me g-
e s in he USA, wi h no obse able imp o emen in p ofi abili y and cos e iciency.
Addi ionally, Cocco ese and Fe i (2020) checked hei esul s o obus ness using
PSM.
272 —T. M. B unne -Ki chmai and J. Bu gs alle
The mixed esul s could also be explained by he di e en mo i es o bank
me ge s. The common opinion is ha me ging banks s i e o e iciency gains and
ma ke sha e, b oaden hei cus ome base, enhance e enue, and di e si yo al e
hei isk p ofiles (Huh ilainen, Saas amoinen, and Suhonen 2022). In eali y, o he
mo i es may domina e, especially o small non-lis ed banks in egional ma ke s.
These banks may conside a me ge as a possible solu ion o managemen succes-
sion, o exi declining ma ke s and a oid financial p oblems (Elsas 2007), o o a oid
necessa y (pending) in es men s in compliance sys ems, IT, and wo k o ce aining
(B aun, Pa ise, and on Ni zsch2013;Dunaway2023;Thompson2019). Thisp essu e
d i es banks wi h lacking o exhaus ed in e nal op imiza ion po en ial o seek con-
solida ion (B aun, Pa ise, and on Ni zsch 2013), and smalle ine icien uni s wi h
modes g ow h p ospec s me ge in o la ge banks ha ope a e in mo e a o able
business en i onmen s (Huh ilainen, Saas amoinen, and Suhonen 2022). Howe e ,
ob aining hands-on e idence is di icul . Kjellman, Tainio, and Kangas (2014), o
example, p opose ha a loss o confidence o Finnish bank manage s in being able
o success ully un he bank in he u u e may ha e led hem o seek a me ge . Addi-
ionally, a su ey o 29 manage s o Ge man coope a i e banks by Gindele e al.
(2019) p o ided aluable insigh s. Manage e i emen (o en wi hou eplacemen )
was he main mo i e o igge , which was s a ed abou wice as o en as he eco-
nomic si ua ion. Long- e m sus ainabili y is he main s a egic goal ha me ge s
should suppo , inc eased p oduc i i y comes second, and syne gies ank se en h
(only s a ed wice). Addi ionally, he ins i u ional en i onmen mus be conside ed.
In Aus ia, bank me ge s a e no possible ac oss sec o s (o ‘pilla s’), and, due o
egional p inciples applied, mos me ge s a e among locally nea banks (as in Ge -
many, see B aun, Pa ise, and on Ni zsch 2013). The pe o mance po en ial o bank
me ge s ha a e de ensi e and es ic ed in na u e may no be huge, which migh
explain some common empi ical findings.
The pape a hand ocusses on s akeholde -o ien ed banks, namely c edi
coope a i es and sa ings banks, which cons i u e an impo an and in eg al pa
o Eu opean banking sys ems (Kalmi 2017). Unlike sha eholde -o ien ed banks,
which ocus on maximizing sha eholde in e es s, s akeholde -o ien edbanksha e
b oade business objec i es and balance he in e es s o a wide g oup o s ake-
holde s (including employees, cus ome s, he egional economy and socie y). Fo
sa ings banks and c edi coope a i es, imp o ing non-financial objec i es (such
as p o iding local access o financing o communi y engagemen ) may ep esen
an addi ional goal o a me ge . Fu he mo e, because bank pe o mance should be
e alua ed agains pu sued objec i es (Ahn and Le 2014;B own 2006), measu es o
me ge success should also conside he consequences o s akeholde s.
Explo ing he Success o Regional Bank Me ge s —273
2.2 Consequences o Bank Me ge s o S akeholde s
As di e se s udy findings a e on pe o mance e ec s, DeYoung, E ano , and
Molyneux (2009) a gue ha i seems equally di icul o each a conclusion on
whe he cus ome s benefi om bank me ge s o on how consolida ion a ec s
socie al isks. They also epo g owing e idence ha me ge s may ad e sely
a ec a a ie y o bo owe s, deposi o s, and o he ex e nal s akeholde s (DeY-
oung, E ano , and Molyneux 2009). Me ge s a e o en ea ed o esul in he possi-
ble loss o ( o me ) banks’ egional ies (D ees, Keise s, and Schie eck 2006). Coc-
co ese and Fe i (2020) a gue ha inc eased consolida ion migh ha m bo ow-
e s ha a e mo e likely se ed by small banks, wi h po en ial nega i e impac on
egional de elopmen and equali y. Such a de elopmen may iola e (coope a i e)
banks’ e hics and he mission o a o ing he financial inclusion o ma ginal cus-
ome s and coun e ing he c edi a ioning o small businesses (Cocco ese and Fe i
2020).
Few s udies ha e deal wi h s akeholde pe cep ions o me ge s. In elephone
in e iews, U ban and P a (2000) find ha U.S. consume s’ expec a ions o se -
ice quali y di e acco ding o se e al socio-economic a iables1and ha he e
is much unce ain y abou p ospec i e impac s be o e me ge s, which mus be
add essed h ough app op ia e communica ion. Acco ding o Mylonakis (2006b),
bank employees in G eece conside me ge s a h ea o hei jobs and bene-
fi s, which is confi med o some ex en by Mylonakis (2006a).Ál a ez-González
and O e o-Nei a (2020) polled bank employees in Spain abou hei opinion on
me ge consequences o cus ome s o in e abou e ec s on bank-clien ela ion-
ships. They epo imp o men s in he p oduc s and se ices o e ed bu also ha
bank me ge s nega i ely a ec p ices and b anch p oximi y. Ál a ez-González and
O e o-Nei a (2023) discuss esul s om a cus ome su ey on ac o s being decisi e
o hei loyal y o he me ged bank. Manage s o c edi coope a i es in e iewed
by Gindele e al. (2019) epo ed ha cus ome s ea ed b anch closu es in he wake
o a me ge , while municipal o icials would ha e o ace he associa ed ax e -
enue losses. Fu he mo e, a de e io a ion in close ela ionships wi h he bank is
su mised o he coope a i e membe s, cus ome s, and employees.
Mos empi ical s udies on hepos -me ge consequences o s akeholde s ocus
on he impac on small business lending (SBL), s a ing wi h he p esump ion ha
small local banks (s ill) may ha e some compe i i e ad an age in so in o ma-
ion collec ion and o ma ion o s ong ela ionships (Be ge , Bouwman, and Kim
2017;Mkhaibe and We ne 2021;Nguyen and Ba h 2020). Howe e , inc eased
1In e es ingly, emale esponden s and indi iduals wi h highe educa ion and income le els
appea obemo epessimis ic abou heimpac o bankacquisi ions on hequali y o bankse ices.
274 —T. M. B unne -Ki chmai and J. Bu gs alle
egula o y cos s and echnological bu dens impai small banks’ abili y o main-
ain SBL le els (Hughes e al. 2019). Me ge s migh nega i ely a ec bank lending
o local small and medium-sized en e p ises h ough b anch closu es o cen al-
ized decision making. The la e possibili y spu s ea ha me ge s migh dis up
ela ionship lending, o example, when la ge banks acqui e communi y banks, as
a guedbyJag iani, Ko lia ,andMaingi(2016). Howe e , hei esul sdid no confi m
his pe cep ion o common sense. Min on, Taboada, and Williamson (2021) e en
find ela i ely mo e small business lending o igina ions (in coun ies whe e he a -
ge bank is loca ed) when acqui e s a e small and om he same (U.S.) s a e as he
a ge . A e y and Samolyk (2004) also epo a posi i e e ec o (U.S.) communi y
banks’ consolida ion ac i i y on SBL.
Howe e , o he s udies ha e epo ed a decline in SBL a e consolida ion
ac i i y ha is pa ly o se by o he banks o non-bank ins i u ions (Be ge e al.
1998;Bonacco si di Pa i and Gobbi 2007;C aig and Ha dee 2007).2Empi ical s ud-
ies o en p o ide e idence ha me ge s nega i ely a ec he ies be ween banks
and hei cus ome s (Allen, Dama , and Ma inez-Mie a 2016) because ela ion-
ships, especially wi h he bo owe s o a ge banks, may be dis up ed o e mi-
na ed (Deg yse, Masschelein, and Mi chell 2011;Ka ceski, Ongena, and Smi h 2005).
Acco ding oJag iani, Maingi, andDolson (2022),SBLis o en edi ec ed owa ds he
acqui e ’s a eas o ope a ion (coun ies), pa icula ly in me ge s in ol ing banks
wi h non-o e lapping ne wo ks. C edi gaps in coun ies whe e only he a ge was
p esen be o e he me ge may ha e esul ed om his, and Jag iani, Maingi, and
Dolson (2022) find no e idence o o he banks making up o hese gaps.
I passed on, he me ge -induced cos sa ings may lead o lowe lending a es.
Fo comme cial bank me ge s in he USA, E el (2011) epo s such an e ec , which
is he mo e educed he highe he inc ease in ma ke powe o he consolida ed
en i y is. Ba os e al. (2014) also find mo e a o able loan a es a e bank me ge s,
whe eas Yu (2019) does no . Fo a sample o co po a e cus ome s o sa ings banks
whose me ge s we e o ced by coun y e o ms in Ge many, Koe e e al. (2018)
epo educ ions in he cos o bo owing, leading o mo e in es men and employ-
men in hese fi ms. Dunaway (2023), on he o he hand, a gues ha he end o
U.S. communi y banks me ging in o la ge en i ies has mos ly ha med consume s
by inc eased p icing and educed c edi supply.
Bank me ge s may also nega i ely a ec financial access and inclusion by
ampli ying b anch closu es. Me ge s educe b anch densi y in he U.S., especially
in u al a eas (Calzada, Fageda, and Ma ínez-San os 2023), wi h he po en ial o
2Acco ding oEly andRobinson (2009), c edi unions ex end hei lending o he U.S.bankingma -
ke s a ec ed by me ge ac i i ies. Howe e , when c edi unions me ge, hei loan supply dec eases
o a leas wo yea s (Yu 2019).
Explo ing he Success o Regional Bank Me ge s —281
Table 3: Me ge success. This able shows he de elopmen o he ROA, he CIR, loan g ow h,
inancial and social e iciency, om he p e-me ge yea o he hi d yea a e he me ge . Panel A
exhibi s he aw e olu ion, Panel B compa es hese igu es o he espec i e alues in he con ol
g oup. Panel C epo s esul s om he ma ching p ocedu e. The numbe o examined me ge cases
is 127, bu educes o 121 un il he end o he pos -me ge pe iod due o me ging banks being aken
o e hemsel es.
ROA CIR LG FE SE
Panel A: Raw de elopmen
P e-me ge yea 0.503 74.720 2.502 0.714 0.596
Me ge yea 0.404 77.827 −5.430 0.697 0.582
Pos -me ge yea 1 0.498 74.022 3.029 0.724 0.630
Pos -me ge yea 2 0.522 72.591 4.251 0.729 0.639
Pos -me ge yea 3 0.574 71.870 4.522 0.724 0.650
Me ge success 0.050 −2.486 1.822 0.004 0.048
Panel B: Nai e compa ison
P e-me ge yea −0.118∗3.046∗∗ −0.681∗−0.022∗∗ −0.021∗∗
Me ge yea −0.222∗∗ 5.563∗∗ −8.465∗∗ −0.030∗∗ −0.037∗∗
Pos -me ge yea 1 −0.112∗∗ 1.876∗−0.459 −0.010 −0.004
Pos -me ge yea 2 −0.079∗∗ 0.473 0.306 −0.004 −0.005
Pos -me ge yea 3 −0.010 −0.506 0.035 −0.001 0.004
Me ge success 0.105∗−3.225∗∗ 0.566 0.017∗∗ 0.019∗∗
Panel C: A e ma ching
P e-me ge yea −0.070 0.536 −0.415 −0.001 −0.011
Me ge yea −0.161∗∗ 3.370∗∗ −8.855∗∗ −0.009 −0.023
Pos -me ge yea 1 −0.052 0.179 −1.216 0.010 0.009
Pos -me ge yea 2 −0.051 −1.064 −0.233 0.015 0.008
Pos -me ge yea 3 −0.016 −1.669 0.035 0.017 0.016
Me ge success 0.034 −1.808 0.289 0.013 0.021∗
One as e isk ma ks signi icance wi h s anda d - es s a he 10 % le el, while wo as e isks indica e
signi icance a he 5 % le el.
compa ison),we deduc hemeano he espec i e a iables om he con olg oup
(in he espec i eyea ).The hi dpanelp esen s hema chingp ocedu eou comes.
The e m ‘me ge success’ is used o he a e age change in banks’ pe o mance
a iables om he p e-me ge yea o he end o he e alua ion pe iod.
The immedia e nega i e consequences o he a e age me ge (in he consolida-
ion yea ) can be obse ed om all a iables in ( he nai e) compa ison wi h ne e -
me ging banks. An ini ial wo sening o p ofi abili y, cos -income a io, and loan
g ow h is also obse able in he esul s o he ma ching p ocedu e. Un il he end o
he examined pos -me ge pe iod, howe e , p ofi abili y and e iciency imp o ed
282 —T. M. B unne -Ki chmai and J. Bu gs alle
significan ly in he nai e compa ison o he con ol g oup. Ye , om ma ching, we
in e ha hese e ec s a e much smalle and s a is ically insignifican . This also
applies o he es ima ed final me ge success a e h ee pos -me ge yea s, excep
o he (weakly significan ) imp o emen in social e iciency.
Al hough a me ge -induced inc ease in social e iciency (SE), in p inciple,
would ep esen a desi ed e ec , i pays o ake a close look a he e olu ion o
indi idual componen s. SE seems o imp o e mainly owing o dec eases in ope a -
ingcos s o e compensa inginc easedb anchclosings(which ep esen a educ ion
in he p oposed benefi s). E en hough we a e no able o e alua e he quali a-
i e na u e o hese changes – pe sonnel educ ion may be ‘only’ a i ion, and
o he cos educ ions do no necessa ily nega i ely a ec he se ice quali y o
local supplie s, cau ion should be exe cised when in e p e ing an inc ease in social
e iciency as an imp o emen in egional s akeholde wel a e.
Thus, he e is no significan a e age imp o emen in p ofi abili y and e i-
ciency in he pos -me ge pe iod when selec ion is conside ed. Ne e heless, he
educ ion in he cos -income a io seems non-negligible ( he e seems o be some
success in cu ing cos s, on a e age). Regional bank me ge s in Aus ia appea o
ha e no nega i e consequences o bank loan g ow h. Howe e , he e is huge a i-
a ion in he success o me ge s. Al hough he a e age consolida ion does no lead
o a significan imp o emen in p ofi abili y, he e a e many success ul me ge s.
A e in es iga ing he obus ness issues, we seek o unco e he ac o s connec ed
o he di e si y o me ge ou comes in Sec ion 4.3.
4.2 Fu he Analysis and Robus ness o Resul s on A e age
Me ge Success
Using he same p ocedu e, we examine which s a egic a iables a e al e ed a e
an a e age me ge . The (non-exhaus i e) lis o associa ed indica o s e alua ed
con ains he numbe o bank o ices, a ios om he balance shee and income
s a emen , ma ke powe , a e age in e es a es in he o m o in e es income
(expenses) as a ac ion o in e es -ea ning (in e es -bea ing) asse s (liabili es),
a ios o pe sonnel and adminis a i e expenses, in e es income, and income om
ees and commissions (all ela i e o o al asse s) and, finally, he a io o loan e al-
ua ions (including di ec w i e-o s). A e balancing me ging and non-me ging
banks on he same a iables as be o e, wo significan di e ences eme ged. Fi s ,
consolida ed banks in ou sample close mo e b anches han he con ol g oup
(up o h ee yea s ollowing he me ge ); second, hey educe he adminis a i e
expense a io mo e s ongly. Co esponding esul s can be ound in Table A.5 in he
Appendix.
Explo ing he Success o Regional Bank Me ge s —283
Howe e , hese ac i i ies do no seem su icien o imp o e p ofi abili y signi -
ican ly (see he esul s abo e). While his seems o confi m he ocus on cos educ-
ions (as in Hagendo and Keasey 2009), pos -me ge enhancemen s in income
gene a ion seem less p onounced. In addi ion, we did no obse e significan ly
s onge educ ionsinpe sonnelexpenseso inc easesin(exe cised)ma ke powe
compa ed wi h he con ol g oup. In summa y, he consequences a ec ing s ake-
holde s a e ambiguous. On he one hand, he wel a e- educing e ec s ela ed o
pe sonnel and ma ke powe do no seem o be s ongly o ced by me ging banks,
a leas in he sho and medium un. The e a e also no ad e se e ec s on loan
g ow h, bu ela i ely mo e b anches a e closed, and adminis a i e expenses a e
cu , which may po en ially hu local supplie s.
Two exe cises we e conduc ed o es he obus ness o he esul s.10 Fi s , he
espec i e ou come a iable is used o balance he ea men and con ol g oups in
he p e-me ge yea . Beh and Heid (2011), o example, a gue ha assignmen o
he g oup o me ging banks is no independen o me ge ou comes i he a e age
me ging bank unde pe o ms, leading o biased es ima es. While u he educing
selec ion p oblems, all di e ences in, o example, p e-me ge p ofi abili y o e i-
ciency, a e le elled ou . Fo all a iables e alua ed, he esul s o me ge success do
no seem o be quali a i ely a ec ed. No significan changes in dependen a iables
a e obse able on a e age h ee yea s a e he me ge also in his se ing, as also
he e ec on social e iciency loses he weak significance i had.
Second, we measu e whe he he esul s change when conside ing a fi e-yea
e alua ion pe iod o me ge cases obse able un il 2016. She man and Rupe
(2006), o example, a gue ha me ge benefi s may no be ealized e en a e ou
yea s i in eg a ion and cos -sa ing p ocedu es a e delayed. Howe e , he numbe
o me ge s ha can be aced o such a long pe iod educes o 91 (ou o he 99 cases
obse able o he unca ed pe iod, eigh me ged en i ies a e aken o e du ing
he pos -me ge e m). Wi h his educed sample bu a longe e alua ion pe iod,
he es ima es o ma ched me ge success inc ease, wi h loan g ow h and financial
e iciency as excep ions. The a e age ma ched me ge success in he o m o ROA
inc eases o 0.135, which is no significan ly di e en om ze o. Social e iciency
is 0.042 highe a e fi e yea s, he CIR is 2.901 poin s lowe , and he la e e ec
becomes significan a he 10 % le el (i he con ol g oup is no balanced on he
p io CIR). Thus, ce ain cos sa ings, as expec ed, seem o be ealized only a e
some ime.
10 Resul s a e no p esen ed in abula o m, bu a e a ailable upon eques .
284 —T. M. B unne -Ki chmai and J. Bu gs alle
4.3 Fac o s Associa ed wi h Me ge Success
Se e al ac o s, p ac ices, and s a egies may explain why some egional banks
imp o e s ongly a e a me ge , whe eas o he s s agna e. The ma ching p ocedu e
conside s he cha ac e is ics (and en i onmen al ac o s) o he p e-me ge yea ;
howe e , hese bank a ibu es may change wi h and a e consolida ion. Thus, we
sough o explo e he in o ma ion om ou da ase o find ou which a ibu es a e
co ela ed (mos ) wi h me ge success.11 En i onmen al da a was no used a his
s age because o i s expec ed ela i e cons ancy.
Figu e 1 depic s me ge success in all fi e a iables o in e es ( hei change
h ee yea s a e consolida ion compa ed o he p e-me ge le el) g aphically. Ou
o 121 cases o consolida ion ha a e s ill p esen h ee yea s la e , a es o imp o e-
men ange om app oxima ely hal o he banks (wi h loan g ow h) o 65 pe cen
(wi h espec o he cos -income a io).
The me ge success a iables a e hen eg essed (including ime dummies) on
a uni o m se o ac o s consis ing o he di e ences in he cha ac e is ics o he
acqui e s and a ge s in he p e-me ge yea ( hose no applied in he ma ching p o-
cedu e), and o he consolida ed en i y, changes in hese ac o s du ing he me ge
pe iod. Pe sonnel and o he adminis a i e expenses a e en e ed in he o m o
hei pe cen age a io o o al asse s (%), and alue adjus men s a e ela i e o o al
loans o cus ome s. A me ge expe ience dummy is also applied, which akes he
alue o 1 i he bank (acqui e only) had a me ge be o e (bu a e 2000 only). Fu -
he mo e, he e a e dummies o me ge s in he Rai eisen sec o , o mul i-bank
me ge s (consolida ions wi h wo o mo e acqui ed banks) and me ging banks a -
ge ed la e in he examina ion pe iod (mo e han h ee yea s a e he e alua ed
me ge ).
Fo each pe o mance a iable e alua ed, i s (consolida ed) p e-me ge le el
is s a is ically significan . Fo example, he wo se he CIR in he yea be o e he
me ge , he mo e i imp o es du ing he e alua ion pe iod. An influen al ex-an e
di e ence in he dependen a iable be ween acqui e s and a ge s appea s only
o heCIR,wi hbankss uggling oimp o e heCIRi a ge swe emuchmo eine -
ficien han he acqui e be o e he me ge . This seems o con adic he esul o
Koe e (2008) o may sugges ha he e is a h eshold ha indica es p oblems wi h
he a ge ha a e no easily esol ed. The dummy o la e akeo e is significan ly
ela ed o he change in he CIR, sugges ing ha hose aken o e a e banks ha
a e unsuccess ul in dec easing he CIR in he pos -me ge pe iod. Me ging banks in
11 The eis nodi ec in o ma iona ailable, howe e , ons a egicbeha io in e ms o p oduc and
se ice expansion, changes in lending possibili ies and echnologies, and o ganiza ional changes.
Fu he mo e, i is no possible o assess cus ome loyal y o pe sonnel commi men using ou da a.
Explo ing he Success o Regional Bank Me ge s —285
0.2 .4 .6 .8 1
−6 −4 −2 0 2 4
0.02 .04 .06
−20 −10 010 20
0 .02 .04 .06 .08
−20 −10 010 20
0 1 2 3 4
−.4 −.2 0.2 .4
0 1 2 3 4 5
−.4 −.2 0.2 .4
Figu e 1: Dis ibu ion o changes in he ROA ( op le ), he CIR ( op igh ), loan g ow h (mid le ),
inancial e iciency (mid igh ), and social e iciency (bo om) om he p e-me ge yea o h ee yea s
a e he me ge .
he Rai eisen sec o expe ience highe pos -me ge loan g ow h han do consoli-
da edsa ings banks o Volksbank c edi coope a i es.Me ge expe ienceposi i ely
a ec s bo h e iciency a iables.
O he ex-an e di e ences be ween acqui e s and a ge s (combined a ge s,
i he e a e wo o mo e) a e ha dly significan ly connec ed o he dependen
a iables’ pos -me ge de elopmen . Fo example, he highe he di e ence in he
adminis a i e expense a io, he lowe he success o CIR educ ion, which migh
hin a poo e esul s eme ging wi h ine icienc acqui e s. Howe e , cos -income
a ios appea o be inc easingly pushed downwa ds i he ma ke powe o he
286 —T. M. B unne -Ki chmai and J. Bu gs alle
acqui e is highe han ha o he a ge ed bank o banks. Con a y o expec a ions,
he di e ences in size we e ne e significan .
Table 4 shows how he changes in po en ial s a egic a iables and me ge
ou comes (bo h om he p e-me ge yea o h ee yea s a e he me ge ) a e in e -
ela ed, Table A.6 in he Appendix epo s he unde lying eg ession esul s. Some
o hese in e ela ions occu na u ally, such as highe pos -me ge loan g ow h
being associa ed wi h an inc easing loan a io in he balance shee , o ha inc eas-
ing in e es income a ios indica e imp o emen s in financial e iciency (gi en ha
nonin e es income is one o he ou pu s applied). F om hese esul s, i can be
easoned ha bank me ge s wi h imp o ed p ofi abili y a e hose ha succeeded
in educing adminis a i e cos s mo e s ongly. Howe e , pe sonnel expenses and
ma ke powe seem o be le e s o imp o emen s in he cos -income a io. A
leas in he sample a hand, banks ha inc easingly educed pe sonnel expenses
o ob ained ela i ely mo e p icing powe also expe ienced g ea e imp o emen s
in he CIR. Pos -me ge imp o emen s in financial e iciency a e also ela ed o
pe sonnel expenses, and, as a gued be o e, expense cu s and b anch closu es
a ec social e iciency ou comes. In addi ion, mo e p onounced inc eases in ma ke
powe seem o indica e ad e se social e iciency de elopmen s.
De elopmen s in bank equi y a ios ha e also been examined, al hough i is
no en i ely clea whe he hese a e s a egic adjus men s. Ne e heless, s ong
d ops in he equi y a io a e obse able o some ins i u ions in he sample (up
o 3pp), and his g oup o banks appea s o d i e he connec ion be ween equi y
a io changes and pos -me ge p ofi abili y, CIR, and loan g ow h (see Table 4).
The combined size o hese ins i u ions is a he low, and hey s a wi h a a he
high capi aliza ion le el (so he e is no need o u he imp o e i by me ging)
Table 4: Pos -me ge analysis. This able shows whe he and how changes (dec eases o inc eases) in
ce ain s a egic a iables om he p e-me ge yea up o h ee yea s a e consolida ion a e ela ed
o me ge success o e he same ime ame.
ROA CIR LG FE SE
Imp o es (+) o de e io a es (−)
Dec ease in bank o ices −
Inc ease in loans a io +
Dec ease in equi y a io −++
Inc ease in in e es income a io +
Inc ease in ma ke powe +−
Dec ease in pe sonnel expenses a io +++
Dec ease in adminis a i e expenses a io ++
Dec ease in alue adjus men s a io
Explo ing he Success o Regional Bank Me ge s —287
and good p ofi abili y. They seem o pu sue a c edi expansion s a egy (as loan
g ow h o e he me ge e alua ion pe iod is much la ge han ha o he emain-
ing me ging banks) and a e success ul in cu ing cos s (b inging he CIR down). By
con as , p ofi abili y emains low and significan ly behind p e-me ge le els a e
he h ee pos -me ge yea s. Fu he examina ion o he cha ac e is ics o me g-
ing banks wi h alling equi y a ios e eals no slump in ope a ing income. Delayed
alue adjus men s o he c edi po olio (wi h a peak in he second pos -me ge
yea ) and high w i e-downs o o he financial asse s (bonds, s ocks, pa icipa ions,
and sha es in a ilia ed en e p ises) educe he e olu ion o he ROA. Thus, he e
seems o be a clus e o banks ha po en ially d i es some o ou main esul s,
which a e expanding he adi ional loan business (while coping wi h cha ge-o s,
especially in financial asse s), and ambi iously downscaling adminis a i e cos s.
5 Conclusions
The exis ing li e a u e on bank me ge s exhibi s no ewo hy limi a ions, pa icu-
la ly a sca ci y o s udies on he Eu opean ma ke and he consolida ion ac i i ies o
small, unlis ed banks, o o financial ins i u ions wi h a double bo om line. In addi-
ion, li le a en ion has been paid o selec i i y p oblems. To add ess his esea ch
gap, we analyze 121 Aus ian bank me ge s ha occu ed be ween 2005 and 2018.
The Aus ian ma ke is cha ac e ized by small and e y close egional me ge s
o s akeholde -o ien ed banks (coope a i e and sa ings banks) ha also pu sue
non-financial (social) objec i es, ha is, balance he in e es s o a wide g oup o
s akeholde s.
In a nai e compa ison wi h ne e -me ging banks, he a e age me ge was
ound obesuccess ul h eeyea s a e execu ion in e mso ROA,CIR, andfinancial
and social e iciency. Howe e , when accoun ing o he selec i i y p oblem using
a ma ching app oach, no such e ec is obse able a con en ional significance le -
els. Fu he mo e, we iden i y a ious s a egic decisions du ing he pos -me ge
phase, such as inc eases in ma ke powe and educ ions in pe sonnel expenses,
which significan ly impac indi idual me ge success.
Ou esul s ha e se e al implica ions o u u e esea ch. They highligh he
necessi y o conside ing he selec i i y p oblem in he analysis o bank me ge s,
ha is, selec ing an app op ia e con ol g oup. Aus ian bank me ge s would be
e alua ed oo posi i ely i only a nai e compa ison wi h non-me ging banks was
made. The esul s o many p e ious s udies mus be conside ed in ligh o he ac
ha acqui e s, a ge s, and con ol g oups di e s ongly om each o he , and
ma ching app oaches a e necessa y o inco po a e ha .
288 —T. M. B unne -Ki chmai and J. Bu gs alle
Addi ionally, ou s udy p o ides no el e idence conce ning an al e na i e
measu e o me ge pe o mance ha encompasses he b oade objec i e o s ake-
holde banks in ol ed in egional bank me ge s, ha is, social e iciency. Al hough
ini ial obse a ions sugges ha bank me ge s p ima ily imp o e social e iciency,
in line wi h s akeholde goals, a close examina ion o he esul s p o ides a mo e
nuanced pe spec i e. Agains he expec a ions o s akeholde banks ying o a oid
o e ly nega i e consequences o cus ome s, employees, and he egion, u he
analysis shows ha he (weak) enhancemen in ou social e iciency measu e p i-
ma ily a ises om educ ions in adminis a i e cos s mo e han o se ing he neg-
a i e e ec s o bank o ice closu es. While his calls o a mo e efinded defini ion
o social e iciency, we ad oca e e alua ing he e ec s o s akeholde s alongside
con en ional pe o mance measu es in u u e analyses o bank me ge s. Fu he
esul s o ou s udy ha poin in a a o able di ec ion conce ning bank s akehold-
e s a e ha loan g ow h and pe sonnel expenses a e no significan ly educed, and
ha he me ging banks, on a e age, did no subs an ially inc ease hei exe cised
ma ke powe .
The key akeaway om ou in es iga ion is ha he a e age me ge o small
egional banks does no appea o be alue-des oying o alue-enhancing. This can
be a ibu ed o a ious ac o s, including he cos s associa ed wi h he es uc u -
ing and in eg a ion p ocesses, which a e pa icula ly e iden in he me ge yea .
Addi ionally, smalle banks may possess limi ed expe ience wi h me ge s, which
u he a ec s hei o e all pe o mance. Fu he mo e, ob aining addi ional e -
enue oppo uni ies in cons ained egional ma ke s may p o e challenging. Despi e
he appa en mixed success o Aus ian bank me ge s, hei ine i abili y is unde -
sco ed by he p e ailing condi ions in he o e banked Aus ian ma ke . Small
egional banks ace moun ing p essu e, such as egula o y equi emen s and ech-
nological ad ancemen s, compelling hem o pu sue me ge s as a coping mecha-
nism. To assis indus y p ac i ione s, we iden i y he ac o s influencing indi id-
ual me ge success in bo h he p e-me ge and pos -me ge phases, enabling he
p io i iza ion o ac ions and s a egies.
Howe e ,ou s udyhas some limi a ions.Fi s , henumbe o obse ed me ge
cases is no excessi ely high, which means ha a ew special cases wi hin ou
sample migh ha e d i en some o ou esul s. Second, he empo al scope o ou
obse a ion pe iods ( h ee and fi e yea s) may be insu icien o cap u e he ull
ex en o me ge e ec s, as a gued by She man and Rupe (2006), who sugges ha
me ge benefi s may ake a longe ime o mani es . Thi d, he es ic ed ocus on
he Aus ian ma ke , cha ac e ized by i s unique a ibu es, poses challenges in gen-
e alizing ou findings o o he ma ke s, pa icula ly beyond Eu ope. Addi ionally,
he lack o uni o m defini ions o financial and social e iciencies may con ibu e o
he di e gen esul s o di e en s udies on me ge pe o mance analysis.
Explo ing he Success o Regional Bank Me ge s —289
As a ecommenda ion o u u e esea ch, we p opose expanding he analy-
sis o encompass no only la ge bank me ge s o lis ed companies, bu also me g-
e s in ol ing small and egional banks in o he coun ies. Mo eo e , in es iga ing
longe pos -me ge phases despi e po en ial con ounding e en s can yield a mo e
comp ehensi e unde s anding o he las ing impac o bank me ge s. Addi ionally,
quali a i e e idence conce ning he p e-me ge mo i es and pos -me ge decision-
making p ocesses o small and egional banks may shed ligh on he he e ogenei y
o esul s in he me ge con ex . Finally, explo ing po en ial mission d i s a e
me ge s, whe e me ging en i ies may adop beha io s akin o con en ional banks,
me i s u he in es iga ion. Banking sec o consolida ion may jeopa dize he busi-
ness models o small and egional banks, hinde ing p oximi y o cus ome s and
local in o ma ional ad an ages. Ou findings sugges ha me ging banks inc eas-
ingly sac ifice p oximi y, he eby comp omising hei compe i i e ad an ages.
Acknowledgmen s: We a e g a e ul o an anonymous e iewe o p o iding alu-
able eedback ha helped o imp o e ou wo k. Fu he mo e, we would like o
hank Edi age (www.edi age.com) o English language edi ing.
Resea ch e hics: No applicable.
In o med consen : No applicable.
Au ho con ibu ions: The au ho s ha e accep ed esponsibili y o he en i e con-
en o his manusc ip and app o ed i s submission.
Con lic o in e es : The au ho s decla e ha hey ha e no compe ing financial
in e es s o pe sonal ela ionships ha may ha e influenced he wo k epo ed in
his s udy.
Resea ch unding: This esea ch did no ecei e any specific g an om unding
agencies in he public, comme cial, o no - o -p ofi sec o s.
Da a a ailabili y: The au ho s do no ha e pe mission o sha e he da a ob ained
om S a is ics Aus ia.
290 —T. M. B unne -Ki chmai and J. Bu gs alle
A Tables
Table A.1: Desc ip ion and s a is ics o ou pu and inpu (bene i and cos ) measu es in calcula ing
inancial (FE) and social e iciency (SE). S a is ics a e calcula ed o he pe iod 2004 o 2021 (10,595
obse a ions o 713 banks). Eu o alues a e adjus ed o in la ion using he Ha monized Index o
Consume P ices (HICP). FE and SE a e calcula ed by DEA assuming a iable e u ns o scale.
E iciency sco es a e bias-co ec ed pe Sima and Wilson (1998).
Va iable Desc ip ion Measu emen uni
Ou pu s and inpu s used o calcula e inancial e iciency (FE)
Loans Claims agains c edi ins i u ions non- inancial
cus ome s
Million eu o
O he ea ning asse s Fixed-income secu i ies, sha es, sha es and
pa icipa ions in a ilia ed en e p ises
Million eu o
Non-in e es income Ne income om ees and commissions, income
om secu i ies, pa icipa ions and inancial
ope a ions
Million eu o
Pe sonnel expenses S a expenses Million eu o
Adminis a i e expenses O he adminis a i e expenses, dep ecia ion Million eu o
In e es expenses In e es payable and simila cha ges Million eu o
Bene i s and cos s employed o calcula e social e iciency (SE)
Loans plus deposi s Loans plus liabili ies o non- inancial cus ome s Million eu o
Bank o ices Numbe o o ices he bank ope a es in
municipali ies wi h less han 10,000 inhabi an s
Coun
z-sco e Re u n on asse s plus equi y a io, di ided by he
s anda d de ia ion o he e u n on asse s
Sco e
Pe sonnel expenses S a expenses Million eu o
Adminis a i e expenses O he adminis a i e expenses, dep ecia ion Million eu o
Ne w i e-downs Ne alue adjus men s o loans (including di ec
w i e-o s), ne isk p o isions o lending
Million eu o
Va iable Mean S anda d de ia ion Minimum Maximum
Loans 918.54 5,644.44 6.36 128,308.70
O he ea ning asse s 203.55 1,517.36 0.00 39,996.76
Non-in e es income 11.27 82.82 −0.01 1,969.90
Pe sonnel expenses 9.08 56.50 0.00 2,153.78
Adminis a i e expenses 6.55 39.80 0.03 1,063.44
In e es expenses 18.86 163.33 −27.84 5,411.55
Loans plus deposi s 1,455.15 8,320.55 6.36 184,016.40
Bank o ices 4.83 7.07 0 97
z-sco e 60.29 62.87 −3.40 1,499.86
Ne w i e-downs 3.09 27.61 −375.57 1,277.81
Financial e iciency 0.74 0.12 0.19 0.98
Social e iciency 0.61 0.13 0.10 0.97
Explo ing he Success o Regional Bank Me ge s —297
he ollowing). Assuming (VRS), he oupu -o ien ed echnical e iciency (TE) sco e
o DMUois he solu ion o he Linea P og amming p oblem
max{𝜙o:𝜙oyko ≤
n
∑
i=1
𝜆iyki,xjo ≥
n
∑
i=1
𝜆ixji,
n
∑
i=1
𝜆i=1,𝜆
i≥0}(1)
o j=1,…,qcos ac o s xjand k=1,…,pbenefi s yk. Op imiza ion is made
o e 𝜆1,…,𝜆
n(weigh s pe aining o benchma k DMUs i=1,…,n)and𝜙,wi h
1≤𝜙<∞.𝜙−1 is he p opo ional inc ease in ou pu ha can be achie ed wi h
inpu s held cons an , and ecip ocal alues o he es ima ed 𝜙define TE sco es
ha a y be ween ze o and one (Coelli e al. 2005,180).Fo mo ede ailsonDEA
see, o example, he seminal a icles by Cha nes, Coope , and Rhodes (1978) and
Banke , Cha nes, and Coope (1984), o s anda d e e ences like Coope ,Sei o d, and
Tone (2007) o Boge o and O o (2011).
B.2 En opy Balancing
En opy balancing (EB) is a eweigh ing me hod o causal in e ence in obse a-
ional s udies wi h bina y ea men s (Hainmuelle 2012) unde he assump ion
o selec ion. I is designed o achie e exac balance be ween ea men and con-
ol g oups by di ec ly imposing es ic ions so ha he co a ia e dis ibu ions
ma ch on p especified momen s (mean, a iance, and possibly highe momen s).
Fo example, he balance condi ion o an equal mean o ea men and ( eweigh ed)
con ol g oup wi h espec o ma ching a iable x,wi hTas ea men s a us and
weigh s 𝑤, can be w i en as
∑
i|Ti=0
𝑤ixi=∑
i|Ti=1
xi(2)
The weigh s used in ha a e ob ained by sol ing a cons ained op imiza ion
p oblem ha minimizes he en opy di e gence o weigh s om uni o mi y, sub-
jec o he applied balance condi ions. Achie ed imp o emen s in balance educe
model dependence o he subsequen es ima ion o ea men e ec s as he ea -
men a iable becomes close o being independen o backg ound cha ac e is ics.
Unlike p opensi y sco e ma ching (Rosenbaum and Rubin 1983) o in e se p ob-
abili y weigh ing, en opy balancing does no equi e a (possibly misspecified)
model o ea men assignmen , and e ains all obse a ions, imp o ing s a is i-
cal e iciency. Fo an in oduc ion o ma ching me hods and u he de ails see, o
example, Hun ing on-Klein (2022, Chap e 14).
In sum, he ollowing ea u es and me i s o EB eme ge. Fi s , EB weigh s
a e di ec ly es ima ed om he balance cons ain s, o ob ain a high deg ee o
298 —T. M. B unne -Ki chmai and J. Bu gs alle
co a ia e balance. This ob ia es he need o con inual balance checking and diag-
nos ics like in con en ional p opensi y sco e models ha y o s ochas ically bal-
ance he co a ia e momen s. EB hus also a oids po en ial bias in he subsequen
es ima ion o ea men e ec s s emming om likely biased p opensi y sco es ou
o simple logi o p obi models ha o he ma ching me hods a e o en based upon.
Pa ish e al. (2018) and Ma schinge , Heide , and König (2020), o example, epo
supe io co a ia e balance compa ed o adi ional p opensi y sco e weigh ing
me hods. Hainmuelle (2012) o Zhao and Pe ci al (2017) confi m a educ ion o
bias and model dependence in ou come specifia ions.
Second, EB does no d op obse a ions and ypically allows weigh s o a y
smoo hlyac oss uni s (Hainmuelle 2012). O he app oaches, suchasNea es Neigh-
bo Ma ching, Ke nel Ma ching o Coa sened Exac Ma ching, o en disca d uni s
(o a e e en designed o do ha ). Mo eo e , weigh s calib a ed by EB can be easily
passed o subsequen es ima ion o ea men e ec s, e.g. a weigh ed leas squa es
eg ession o he ou come on he ea men a iable (and possible co a ia es).
Finally, a possible d awback is ha EB may p oduce la ge weigh s o some obse -
a ions, hus making hem influen al (McMullin and Schonbe ge 2022;Pa ish e al.
2018).
B.3 De ails on Ma ginal Cos and Le ne Index Es ima ion
The Le ne index (Le ne 1934) is calcula ed as he ma k-up o (agg ega e) ou pu
p ice po e ma ginal cos mc, ela i e o p ice, as
Li =pi −mci
pi
(3)
Banks a e assumed o p oduce only one agg ega e ou pu good whose p ice is
p oxiedby o al income di ided by o alasse s. The Le ne index measu es heac u-
ally exe cised monopoly powe and anges be ween ze o (pe ec compe i ion) and
he in e se o he p ice elas ici y o demand (in monopoly o collusion). Ma ginal
cos is es ima ed by means o a s anda d log-linea cos unc ion ollowing he
in e media ion app oach o bank p oduc ion (Sealey and Lindley 1977), wi h ou -
pu qand he h ee (s anda d) inpu s pe sonnel, fixed asse s and financial unds.
Inpu p ices a e measu ed by pe sonnel expendi u es di ided by o al asse s (as he
numbe o employees is no a ailable) as he p ice o labo (deno ed by pl), o he
adminis a i e and ope a ing expenses (including dep ecia ion and amo iza ion)
as a sha e o fixed asse s p oxying he p ice o capi al (pk), and he a io o in e es
expenses o o al in e es -bea ing unds ep esen ing he cos o financial unding
Explo ing he Success o Regional Bank Me ge s —299
(pd). Linea homogenei y in inpu p ices is imposed by di iding o al cos ( c)and
( he emaining) inpu p ices by pd o ob ain
ln ci
pd,i
=𝛽0+𝛽1ln pl,i
pd,i
+𝛽2ln pk,i
pd,i
+𝛼ln qi +𝜖i (4)
o , espec i ely (in oducing zand d opping bank and ime subsc ip s iand ),
ln c
pd
=𝛽0+𝛽1ln 𝑤l+𝛽2ln 𝑤k+𝛼(z)lnq+𝜖(5)
A PLSC (pa ial linea smoo h coe icien ) app oach is applied o ob ain bank-
yea obse a ions on ma ginal cos ollowing Delis, Iosifidi, and Tsionas (2014) and
Cle ides, Delis, and Kokas (2015), who a gue ha semi-pa ame ic me hods p o-
ide mo e obus and mo e accu a e es ima es o mc han pa ame ic me hods.
PLSC uses local eg ession echniques o ob ain es ima es o 𝛼 o each bank ia
ime in a wo-s ep p ocedu e. As no specific unc ional o m is imposed (as in a
pa ame ic es ima ion o , e.g. a anslog cos unc ion), he app oach allows o he -
e ogeneous p oduc ion echnologies o banks (Cle ides, Delis, and Kokas 2015, 279).
Fo u he de ails, see Cle ides, Delis, and Kokas (2015),B issimis, Delis, and Iosifidi
(2014), and he e e ences he ein. Es ima ions o his pape use he Rpackage np
o Hayfield and Racine (2008). The es ima ed model (Equa ion (5))islinea in he
eg esso s, bu he coe icien o ou pu is allowed o change “smoo hly” wi h he
alue o he smoo hing a iable z,whichshi smc and a ies ac oss banks and ime
(Cle ides, Delis, and Kokas 2015, 278). Following Cle ides, Delis, and Kokas (2015),
we choose z=ln 𝑤l+ln 𝑤k(Delis, Iosifidi, and Tsionas 2014, apply he a e age o
𝑤land 𝑤k). Ma ginal cos is hen ob ained by mul iplying he fi s de i a i e wi h
espec o ou pu by a e age cos (ac) pe uni o ou pu :
mc =𝜕 c
𝜕q=𝛼(z) c
q=𝛼(z)ac (6)
Desc ip i e s a is ics o all a iables applied and calcula ed can be ound in
Table A.3.
Re e ences
Ahn, H., and M. H. Le. 2014. “An Insigh in o he Speci ica ion o he Inpu -Ou pu Se o DEA-Based
Bank E iciency Measu emen .” Managemen Re iew Qua e ly 64: 3−37..
Ahn, H., and M. H. Le. 2015. “DEA E iciency o Ge man Sa ings Banks: E idence om a Goal-O ien ed
Pe spec i e.” Jou nal o Business Economics 85: 953−75..
Akdeniz, Ö. O., H. A. Abdou, A. I. Hayek, J. C. Nwachukwu, A. A. Elame , and C. Pyke. 2024. “Technical
E iciency in Banks: A Re iew o Me hods, Recen Inno a ions and Fu u e Resea ch Agenda.”
Re iew o Manage ial Science 18: 3395−456..
300 —T. M. B unne -Ki chmai and J. Bu gs alle
Allen, J., H. E. Dama , and D. Ma inez-Mie a. 2016. “Consume Bank up cy, Bank Me ge s, and
In o ma ion.” Re iew o Finance 20: 1289−320..
Ál a ez-González, P., and C. O e o-Nei a. 2020. “The E ec o Me ge s and Acquisi ions on
Cus ome -Company Rela ionships.” In e na ional Jou nal o Bank Ma ke ing 38: 406−24..
Ál a ez-González, P., and C. O e o-Nei a. 2023. “Me ge s and Acquisi ions Success: Examining
Cus ome Loyal y.” Ma ke ing In elligence & Planning 41: 48−61..
Amel, D., C. Ba nes, F. Pane a, and C. Salleo. 2004. “Consolida ion and E iciency in he Financial
Sec o : A Re iew o he In e na ional E idence.” Jou nal o Banking & Finance 28: 2493−519..
Aue bach, C. M. 2009. Fusionen deu sche K edi ins i u e. Wiesbaden: Gable .
A e y, R. B., and K. A. Samolyk. 2004. “Bank Consolida ion and Small Business Lending: The Role o
Communi y Banks.” Jou nal o Financial Se ices Resea ch 25: 291−325.
Ayadi, R., D. T. Llewellyn, R. H. Schmid , E. A bak, and W. P. De G oen. 2010. In es iga ing Di e si y in he
Banking Sec o in Eu ope −Key De elopmen s, Pe o mance and Role o Coope a i e Banks. B ussels:
Cen e o Eu opean Policy S udies.
Banke , R. D., A. Cha nes, and W. W. Coope . 1984. “Some Models o Es ima ing Technical and Scale
Ine iciencies in Da a En elopmen Analysis.” Managemen Science 30: 1078−92..
Ba os, P. P., D. Bon im, M. Kim, and N. C. Ma ins. 2014. “Coun e ac ual Analysis o Bank Me ge s.”
Empi ical Economics 46: 361−91..
Beh , A., and F. Heid. 2011. “The Success o Bank Me ge s Re isi ed. An Assessmen Based on a
Ma ching S a egy.” Jou nal o Empi ical Finance 18: 117−35..
Be gendahl, G., and T. Lindblom. 2008. “E alua ing he Pe o mance o Swedish Sa ings Banks
Acco ding o Se ice E iciency.” Eu opean Jou nal o Ope a ions Resea ch 185: 1663−73..
Be ge , A. N., and D. B. Humph ey. 1997. “E iciency o Financial Ins i u ions: In e na ional Su ey and
Di ec ions o Fu u e Resea ch.” Eu opean Jou nal o Ope a ional Resea ch 98: 175−212..
Be ge , A. N., A. Saunde s, J. M. Scalise, and G. F. Udell. 1998. “The E ec s o Bank Me ge s and
Acquisi ions on Small Business Lending.” Jou nal o Financial Economics 50: 187−229..
Be ge , A. N., C. H. S. Bouwman, and D. Kim. 2017. “Small Bank Compa a i e Ad an ages in Alle ia ing
Financial Cons ain s and P o iding Liquidi y Insu ance o e Time.” Re iew o Financial S udies 30:
3416−54..
Be nad, C., L. Fuen elsaz, and J. Gómez. 2013. “The Consequences o Me ge s on he P o i abili y o
Spanish Sa ings Banks.” Se ice Indus ies Jou nal 33: 266−78..
Bha ia, V., S. Basu, S. K. Mi a, and P. Dash. 2018. “A Re iew o Bank E iciency and P oduc i i y.”
OPSEARCH 55: 557−600..
Black, B. S., P. Lalkiya, and J. Y. Le ne . 2020. The T ouble wi h Coa sened Exac Ma ching. No hwes e n
Law & Econ Resea ch Pape Fo hcoming. Chicago: No hwes e n P i zke School o Law.
h ps://ss n.com/abs ac =3694749.
Boge o , P., and L. O o. 2011. Benchma king wi h DEA, SFA, and R. New Yo k: Sp inge .
Boge o , P., and L. O o. 2015. Benchma k and F on ie Analysis Using DEA and SFA. R Package Ve sion
0.26.
Bonacco si di Pa i, E., and G. Gobbi. 2007. “Winne s o Lose s? he E ec s o Banking Consolida ion
on Co po a e Bo owe s.” The Jou nal o Finance 62: 669−95.
Bo d, V. M. 2018. Bank Consolida ion and Financial Inclusion: The Ad e se E ec s o Bank Me ge s on
Deposi o s. Wo king Pape . Camb idge: Ha a d Uni e si y.
B aun, D., R. Pa ise, and R. on Ni zsch. 2013. “Me ge s as a Response o he Upcoming Challenge
A ising om he New CRD IV Requi emen s −an E ec i e Al e na i e? he Case o Ge man
Coope a i e Banks.” In e na ional Jou nal o Business S a egy 13: 21−36..
Explo ing he Success o Regional Bank Me ge s —301
B azda, J., H. Blisse, and R. Schediwy. 2016. “Coope a i e Banks in he Aus ian Banking Sys em.” In
C edi Coope a i e Ins i u ions in Eu opean Coun ies, edi ed by S. Ka a olas, 3−18. Cham: Sp inge .
B issimis, S. N., M. D. Delis, and M. Iosi idi. 2014. “Bank Ma ke Powe and Mone a y Policy
T ansmission.” In e na ional Jou nal o Cen al Banking 10: 173−213.
B own, R. 2006. “Mismanagemen o Mismeasu emen ? Pi alls and P o ocols o DEA S udies in he
Financial Se ices Sec o .” Eu opean Jou nal o Ope a ional Resea ch 174: 1100−16..
Busch, R., and C. Memmel. 2021. “Why A e In e es Ra es on Bank Deposi s So Low?” C edi and Capi al
Ma ke s 54: 641−68..
Calzada, J., X. Fageda, and F. Ma ínez-San os. 2023. “Me ge s and Bank B anches: Two Decades o
E idence om he USA.” Empi ical Economics 64: 2411−47..
Ca dillo, S., R. Gallo, and F. Gua ino. 2021. Main Challenges and P ospec s o he Eu opean Banking
Sec o : A C i ical Re iew o he Ongoing Deba e. Occasional Pape Numbe 634. Rome: Bank o I aly.
Cha nes, A., W. W. Coope , and E. Rhodes. 1978. “Measu ing he E iciency o Decision Making Uni s.”
Eu opean Jou nal o Ope a ional Resea ch 2: 429−44..
Cle ides, S., M. D. Delis, and S. Kokas. 2015. “A New Da a Se on Compe i ion in Na ional Banking
Ma ke s.” Financial Ma ke s, Ins i u ions & Ins umen s 24: 267−311..
Cocco ese, P., and G. Fe i. 2020. “A e Me ge s Among Coope a i e Banks Wo h a Dime? E idence on
E iciency E ec s o M&s in I aly.” Economic Modelling 84: 147−64..
Coelli, T. J., D. S. P. Rao, C. J. O’Donnell, and G. E. Ba ese. 2005. An In oduc ion o E iciency and
P oduc i i y Analysis, 2nd ed. New Yo k: Sp inge .
Coope , W. W., L. M. Sei o d, and K. Tone. 2007. Da a En elopmen Analysis, 2nd ed. New Yo k: Sp inge .
C aig, S. G., and P. Ha dee. 2007. “The Impac o Bank Consolida ion on Small Business C edi
A ailabili y.” Jou nal o Banking & Finance 31: 1237−63..
Deg yse, H., N. Masschelein, and J. Mi chell. 2011. “S aying, D opping, o Swi ching: The Impac s o
Bank Me ge s on Small Fi ms.” Re iew o Financial S udies 24: 1102−40..
Delis, M., M. Iosi idi, and E. G. Tsionas. 2014. “On he Es ima ion o Ma ginal Cos .” Ope a ions
Resea ch 62: 543−56..
DeYoung, R., D. D. E ano , and P. Molyneux. 2009. “Me ge s and Acquisi ions o Financial Ins i u ions:
A Re iew o he Pos -2000 Li e a u e.” Jou nal o Financial Se ices Resea ch 36: 87−110..
Dinge , V. 2015. “Bank Me ge s and Deposi Ra e Rigidi y.” Jou nal o Financial Se ices Resea ch 47:
27−56..
Dinge , V., C. Schmid , and E. Theissen. 2021. The Real E ec s o Dis essed Bank Me ge s.Wo king
Pape . h ps://ss n.com/abs ac =3865127.
D ees, F., M. Keise s, and D. Schie eck. 2006. “Zum E olg on Spa kassen usionen −Ak uelle
kasuis ische E idenz.” Zei sch i ü ö en liche und gemeinwi scha liche Un e nehmen 29: 24−49..
Dunaway, H. M. 2023. ““B eaking he Bank” Me ge s: How Bank Consolida ion Is Hu ing
Communi ies.” No h Ca olina Banking Ins i u e Jou nal 27: 108−44.
Egge , P., and F. R. Hahn. 2010. “Endogenous Bank Me ge s and Thei Impac on Banking
Pe o mance −Some E idence om Aus ia.” In e na ional Jou nal o Indus ial O ganiza ion 28:
155−66..
Elsas, R. 2007. P eemp i e Dis ess Resolu ion h ough Bank Me ge s. Wo king Pape .
h ps://ss n.com/abs ac =967306.
Ely, D. P., and K. J. Robinson. 2009. “C edi Unions and Small Business Lending.” Jou nal o Financial
Se ices Resea ch 35: 53−80..
E el, I. 2011. “The E ec o Bank Me ge s on Loan P ices: E idence om he Uni ed S a es.” Re iew o
Financial S udies 24: 1068−101..
302 —T. M. B unne -Ki chmai and J. Bu gs alle
Fe hi, M. D., and F. Pasiou as. 2010. “Assessing Bank E iciency and Pe o mance wi h Ope a ional
Resea ch and A i icial In elligence Techniques: A Su ey.” Eu opean Jou nal o Ope a ional
Resea ch 204: 189−98..
Figuei as, I., S. Ga dó, M. G odzicki, B. Klaus, and L. Lebas a d. 2021. “Bank Me ge s and Acquisi ions
in he Eu o A ea: D i e s and Implica ions o Bank Pe o mance.” In Eu opean Cen al Bank (ed.).
Financial S abili y Re iew, No embe 2021, 115−27.
F ancis, B., I. Hasan, and H. Wang. 2008. “Bank Consolida ion and New Business Fo ma ion.” Jou nal
o Banking & Finance 32: 1598−612..
Gala io is, E., K. Kosmidou, D. Kousenidis, E. Laza idou, and T. Papapanagio ou. 2021. “Measu ing he
E ec s o M&As on Eu ozone Bank E iciency: An Inno a i e App oach on Concen a ion and
C edibili y Impac s.” Annals o Ope a ions Resea ch 306: 343−68,.
Gindele, N., R. Doluschi z, L. Sau e , and P. Mülle . 2019. “Fusionen on Volks- und Rai eisenbanken.”
Zei sch i ü das gesam e Genossenscha swesen 69: 162−78,.
Gi a done, C., and O. Ricci. 2023. “Eme ging Issues in Banking.” Re iew o Co po a e Finance 3: 245−73..
Hagendo , J., and K. Keasey. 2009. “Pos -Me ge S a egy and Pe o mance: E idence om he US
and Eu opean Banking Indus ies.” Accoun ing and Finance 49: 725−51..
Hahn, F. R. 2007. “Domes ic Me ge s in he Aus ian Banking Sec o : A Pe o mance Analysis.” Applied
Financial Economics 17: 185−96..
Hainmuelle , J. 2012. “En opy Balancing o Causal E ec s: A Mul i a ia e Reweigh ing Me hod o
P oduce Balanced Samples in Obse a ional S udies.” Poli ical Analysis 20: 25−46..
Hainmuelle , J., and Y. Xu. 2013. “ebalance: A S a a Package o En opy Balancing.” Jou nal o
S a is ical So wa e 54. h ps://doi.o g/10.18637/jss. 054.i07.
Hay ield, T., and J. S. Racine. 2008. “Nonpa ame ic Econome ics: The np Package.” Jou nal o
S a is ical So wa e 27. h ps://doi.o g/10.18637/jss. 027.i05.
Ho, C. S. T., and B. Be gg en. 2020. “The E ec o Bank B anch Closu es on New Fi m Fo ma ion: The
Swedish Case.” The Annals o Regional Science 65: 319−50..
Hughes, J. P., J. Jag iani, L. J. Mes e , and C.-G. Moon. 2019. “Does Scale Ma e in Communi y Bank
Pe o mance? E idence Ob ained by Applying Se e al New Measu es o Pe o mance.” Jou nal o
Banking & Finance 106: 471−99..
Huh ilainen, M., J. Saas amoinen, and N. Suhonen. 2022. “De e minan s o Me ge s and Acquisi ions
Among Finnish Coope a i e and Sa ings Banks.” Jou nal o Banking Regula ion 23: 339−49..
Hun ing on-Klein, N. 2022. The E ec −An In oduc ion o Resea ch Design and Causali y. Abingdon: CRC
P ess.
Ismail, A., I. Da idson, and R. F ank. 2009. “Ope a ing Pe o mance o Eu opean Bank Me ge s.”
Se ices Indus ies Jou nal 29: 345−66..
Jag iani, J., I. Ko lia , and R. Q. Maingi. 2016. “Communi y Bank Me ge s and Thei Impac on Small
Business Lending.” Jou nal o Financial S abili y 27: 106−21..
Jag iani, J., R. Q. Maingi, and E. Dolson. 2022. “How Impo an A e Local Communi y Banks o Small
Business Lending? E idence om Me ge s and Acquisi ions.” Jou nal o Ma hema ical Finance 12:
382−410..
Kalmi, P. 2017. “The Role o S akeholde Banks in he Eu opean Banking Sec o .” In Ins i u ional
Di e si y in Banking, edi ed by E. Miklaszewska, 33−50. Cham: Palg a e Macmillan.
Ka ceski, J., S. Ongena, and D. C. Smi h. 2005. “The Impac o Bank Consolida ion on Comme cial
Bo owe Wel a e.” The Jou nal o Finance 60: 2043−82..
King, G., and R. Nielsen. 2019. “Why P opensi y Sco es Should No Be Used o Ma ching.” Poli ical
Analysis 27: 435−54..
Explo ing he Success o Regional Bank Me ge s —303
Kjellman, A., R. Tainio, and T. Kangas. 2014. “Bank Managemen in Bank Decline: Bank Me ge s as a
Reco e y Recipe?” Jou nal o Economic and Financial S udies 2: 26−36..
Knapp, M., and A. Ga . 2014. “Pos -Me ge Changes in Bank C edi Risk: 1991-2006.” Manage ial
Finance 40: 51−71..
Kobayashi, A., and M. B eme . 2022. “Lessons om Me ge s and Acquisi ions o Regional Banks in
Japan: Wha Does he S ock Ma ke Think?” Jou nal o he Japanese and In e na ional Economies
64: 101202.
.
Koe e , M. 2008. “An Assessmen o Bank Me ge Success in Ge many.” Ge man Economic Re iew 9:
232−64..
Koe e , M., C. Mülle , F. No h, and B. F i z. 2018. May he Fo ce be wi h You: Exi Ba ie s, Go e nance
Shocks, and P o i abili y Scle osis in Banking. Wo king Pape No 49/2018. F ank u : Deu sche
Bundesbank.
Kola ic, S., and D. Schie eck. 2014. “Pe o mance o Bank Me ge s and Acquisi ions: A Re iew o he
Recen Empi ical Li e a u e.” Managemen Re iew Qua e ly 64: 39−71..
Lang, G., and P. Welzel. 1999. “Me ge s Among Ge man Coope a i e Banks: A Panel-Based S ochas ic
F on ie Analysis.” Small Business Economics 13: 273−86. .
Lepe i , L., and F. S obel. 2013. “Bank Insol ency Risk and Time-Va ying Z-Sco e Measu es.” Jou nal o
In e na ional Financial Ma ke s, Ins i u ions and Money 25: 73−87..
Le ne , A. P. 1934. “The Concep o Monopoly and he Measu emen o Monopoly Powe .” The Re iew
o Economic S udies 1: 157−75..
Lozano-Vi as, A., S. C. Kumbhaka , M. D. Fe hi, and M. Shaban. 2011. “Consolida ion in he Eu opean
Banking Indus y: How E ec i e Is i ?” Jou nal o P oduc i i y Analysis 36: 247−61..
Mamun, A., G. Tannous, and S. Zhang. 2021. “Do Regula o y Bank Me ge s Imp o e Ope a ing
Pe o mance?” In e na ional Re iew o Economics & Finance 73: 152−74..
Ma ínez-Campillo, A., and Y. Fe nández-San os. 2017. “Wha abou he Social E iciency in C edi
Coope a i es? E idence om Spain (2008-2014).” Social Indica o s Resea ch 131: 607−29..
Ma ínez-Campillo, A., Y. Fe nández-San os, and M.-P. Sie a-Fe nández. 2018. “How Well Ha e Social
Economy Financial Ins i u ions Pe o med du ing he C isis Pe iod? Explo ing Financial and
Social E iciency in Spanish C edi Unions.” Jou nal o Business E hics 151: 319−36..
Ma schinge , H., D. Heide , and H.-H. König. 2020. “A Compa ison o Ma ching and Weigh ing
Me hods o Causal In e ence Based on Rou ine Heal h Insu ance Da a, o : Wha o Do i an RCT
Is Impossible.” Das Gesundhei swesen 82: S139−S150..
McMullin, J., and B. Schonbe ge . 2022. “When Good Balance Goes Bad: A Discussion o Common
Pi alls when Using En opy Balancing.” Jou nal o Financial Repo ing 7: 167−96..
Min on, B. A., A. G. Taboada, and R. Williamson. 2021. Bank Me ge s, Acqui e Choice and Small Business
Lending: Implica ions o Communi y In es men . Wo king Pape 29284. Camb idge: Na ional
Bu eau o Economic Resea ch.
Mkhaibe , A., and R. A. We ne . 2021. “The Rela ionship be ween Bank Size and he P opensi y o
Lend o Small Fi ms: New Empi ical E idence om a La ge Sample.” Jou nal o In e na ional
Money and Finance 110: 102281.
.
Mylonakis, J. 2006a. “The Impac o Banks’ Me ge s & Acquisi ions on Thei S a Employmen &
E ec i eness.” In e na ional Resea ch Jou nal o Finance and Economics 3: 121−37.
Mylonakis, J. 2006b. “The Pe cep ion o Banks’ Me ge s and Acquisi ions by Bank Employees.”
In e na ional Jou nal o Financial Se ices Managemen 1: 208−17..
Nguyen, H.-L. Q. 2019. “A e C edi Ma ke s S ill Local? E idence om Bank B anch Closings.” Ame ican
Economic Jou nal: Applied Economics 11: 1−32..
304 —T. M. B unne -Ki chmai and J. Bu gs alle
Nguyen, N. T. H., and J. R. Ba h. 2020. “Communi y Banks s. Non-communi y Banks: Whe e Is he
Ad an age in Local Small Business Funding?” A lan ic Economic Jou nal 48: 161−74..
Pa ish, W. J., V. Keyes, C. Beadles, and A. Kandilo . 2018. “Using En opy Balancing o S eng hen an
Obse a ional Coho S udy Design: Lessons Lea ned om an E alua ion o a Complex
Mul i-S a e Fede al Demons a ion.” Heal h Se ices & Ou comes Resea ch Me hodology 18: 17−46..
Poli, F. 2019. Co-ope a i e Banking Ne wo ks in Eu ope. Cham: Palg a e Macmillan.
P age , R. A., and T. H. Hannan. 1998. “Do Subs an ial Ho izon al Me ge s Gene a e Signi ican P ice
E ec s? E idence om he Banking Indus y.” The Jou nal o Indus ial Economics 46: 433−52..
P iege , J. E. 2023. “Local Banking Ma ke s and Ba ie s o En ep eneu ship in Mino i y and O he
A eas.” Jou nal o Economics and Business 124: 106108.
.
Rosenbaum, P. R., and D. B. Rubin. 1983. “The Cen al Role o he P opensi y Sco e in Obse a ional
S udies o Causal E ec s.” Biome ika 70: 41−55..
San-Jose, L., J. L. Re olaza, and J. To es P uñonosa. 2014. “E iciency in Spanish Banking: A
Mul is akeholde App oach Analysis.” In e na ional Financial Ma ke s, Ins i u ions and Money 32:
240−55..
San-Jose, L., J. L. Re olaza, and E. Lama que. 2018. “The Social E iciency o Sus ainabili y: Eu opean
Coope a i e Banking Analysis.” Sus ainabili y 10: 3271..
Sealey, C. W., and J. T. Lindley. 1977. “Inpu s, Ou pu s, and a Theo y o P oduc ion and Cos a
Deposi o y Financial Ins i u ions.” The Jou nal o Finance 32: 1251−66..
She man, H. D., and T. J. Rupe . 2006. “Do Bank Me ge s Ha e Hidden o Fo egone Value? Realized
and Un ealized Ope a ing Syne gies in One Bank Me ge .” Eu opean Jou nal o Ope a ional
Resea ch 168: 253−68..
Sie a-Fe nández, M.-P., A. Ma ínez-Campillo, and Y. Fe nández-San os. 2019. “An E alua ion o Social
Managemen in Spanish C edi Unions du ing he Banking C isis.” Business and Managemen
Re iew 10: 266−75.
Sima , L., and P. W. Wilson. 1998. “Sensi i i y Analysis o E iciency Sco es: How o Boo s ap in
Nonpa ame ic F on ie Models.” Managemen Science 44: 49−61..
Thompson, T. N. 2019. “Me ge , Huh, wha Is i Good o : The Impac s o C edi Union Me ge s.” No h
Ca olina Banking Ins i u e Jou nal 23: 379−98.
U ban, D. J., and M. D. P a . 2000. “Pe cep ions o Banking Se ices in he Wake o Bank Me ge s: An
Empi ical S udy.” Jou nal o Se ices Ma ke ing 14: 118−31..
Yu, S. 2019. Does C edi Union Me ge Bene i Membe s? MA hesis. Saska oon: Uni e si y o
Saska chewan. h p://hdl.handle.ne /10388/12395.
Zhao, Q., and D. Pe ci al. 2017. “En opy Balancing Is Doubly Robus .” Jou nal o Causal In e ence 5:
20160010.
.
Zollo, M., and D. Meie . 2008. “Wha Is M&A Pe o mance?” Academy o Managemen Pe spec i es 22:
55−77,.
