Title: Bank mergers and acquisitions in emerging markets: evidence from the Middle East and the North Africa region

Authors: Sameer Mohammed Sindi; A.N. Bany-Ariffin; Nazrul Hisyam Ab Razak; Fakarudin Kamarudin

Addresses: Finance and Economics Department, College of Business Administration, Taibah University, Madinah, Saudi Arabia ' Faculty of Economics and Management, University Putra Malaysia, Malaysia ' Faculty of Economics and Management, University Putra Malaysia, Malaysia ' Faculty of Economics and Management, University Putra Malaysia, Malaysia

Abstract: This study provides an empirical assessment of shareholders' wealth effects resulting from bank mergers and acquisitions (M&As) in emerging markets of the Middle East and North Africa (MENA) region between 2000 and 2018. A sample of 40 listed acquirer banks from different countries in the MENA was examined in this study. The event study method was employed using three different event windows to examine the short-term effects of M&As on acquirer banks within the MENA region. Based on the analysis and results for the cumulative abnormal returns (CARs), this study found that there were positive CARs in all three event windows. Although, the p-values of the regression models indicated that the positive CARs were not statistically significant. As a result, this study concludes that M&As have not caused significant positive nor negative effects in the short-term on acquirer banks in the MENA region.

Keywords: banks; mergers and acquisitions; M&As; event study; emerging market economies; emerging markets.

DOI: 10.1504/IJBG.2021.10038057

International Journal of Business and Globalisation, 2021 Vol.28 No.1/2, pp.97 - 116

Received: 02 Jan 2019
Accepted: 03 May 2019

Published online: 27 May 2021 *

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