Domestic banking sector development and cross border mergers and acquisitions in Africa

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dc.contributor.authorAgbloyor, E.
dc.contributor.authorAbor, J.
dc.contributor.authorAdjasi, C.
dc.contributor.authorYawson, A.
dc.date.issued2012
dc.description.abstractRecently, 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. © 2012 Production and hosting by Elsevier B.V.
dc.description.statementofresponsibilityElikplimi K. Agbloyor, Joshua Abor, Charles K.D. Adjasi and Alfred Yawson
dc.identifier.citationReview of Development Finance, 2012; 2(1):32-42
dc.identifier.doi10.1016/j.rdf.2012.01.003
dc.identifier.issn1879-9337
dc.identifier.orcidYawson, A. [0000-0002-5000-7871]
dc.identifier.urihttp://hdl.handle.net/2440/72716
dc.language.isoen
dc.publisherElsevier BV
dc.rights© 2012 Production and hosting by Elsevier B.V. on behalf of Africagrowth Institute
dc.source.urihttps://doi.org/10.1016/j.rdf.2012.01.003
dc.titleDomestic banking sector development and cross border mergers and acquisitions in Africa
dc.typeJournal article
pubs.publication-statusPublished

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