PurposeMerger and acquisition (M&A) plays an important role in developing the financial sector. The purpose of the paper is to analyze and evaluate the effects of M&As on the outcome of Islamic and conventional banks. Furthermore, examines the mediating role of market structure between M&A and bank outcome.Design/methodology/approachThis paper uses POLS, panel data techniques and structural equation modeling to analyze a set of samples for 24 banks consisting of 10 Islamic banks and 14 conventional banks involved in M&A from 2004Q1 to 2020Q4 from 6 countries.FindingsGenerally, M&A improves the post-M&A performance of Islamic banks and conventional banks. However, there is size issue. Bank size positively affects Islamic bank performance while conventional does not. Furthermore, market structure mediates the relationship between M&A and the operational performance of Islamic and conventional banks. Implying that after M&A, the market becomes concentrated while it reduces competition.Research limitations/implicationsNumber of banks are limited due to unavailability of data for pre and post-M&A. Future researches can be carried out to study the cross-border M&A along with the regulation between Islamic banks in GCC and Asia Pacific countries.Practical implicationsImproving operational performance plays a significant role. To enhance the performance of Islamic banking industry, M&A between small Islamic banks could be beneficial depending on the market structure.Originality/valueThe mediation role of market structure in between M&A and performance for Islamic and conventional banks is the main contribution of the study.
机构:
Univ Fed Rio Grande do Norte, Programa Pos Graduacao Administracao, Natal, RN, BrazilUniv Fed Rio Grande do Norte, Programa Pos Graduacao Administracao, Natal, RN, Brazil
Fonseca, Rodrigo Raposo da
Almeida, Vinicio de Souza
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机构:
Univ Fed Rio Grande do Norte, Dept Administracao, Natal, RN, BrazilUniv Fed Rio Grande do Norte, Programa Pos Graduacao Administracao, Natal, RN, Brazil
Almeida, Vinicio de Souza
RAE-REVISTA DE ADMINISTRACAO DE EMPRESAS,
2023,
63
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机构:
Univ Sheffield, Management Sch, Sheffield, EnglandUniv Islam Indonesia, Fac Business & Econ, Dept Accounting, Sleman, Indonesia
Ayunda, Kemala Putri
Azzahra, Maudi Rahmah
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h-index: 0
机构:
Univ Gadjah Mada, Fac Econ & Business, Dept Accounting, Yogyakarta, IndonesiaUniv Islam Indonesia, Fac Business & Econ, Dept Accounting, Sleman, Indonesia
Azzahra, Maudi Rahmah
Hassan, M. Kabir
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h-index: 0
机构:
Univ New Orleans, Dept Econ & Finance, New Orleans, LA USAUniv Islam Indonesia, Fac Business & Econ, Dept Accounting, Sleman, Indonesia