Integration, Regulation, and Corporate Governance in the EU Banking Sector [Elektronische Ressource] / Matthias Köhler. Reint Gropp. Falko Fecht

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Informations

• Publié par: ebs_universitat_fur_wirtschaft_und_recht_wiesbaden
• Publié le: 01 janvier 2010
• Nombre de lectures: 22
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

EUROPEAN BUSINESS SCHOOL
International University Schloss Reichartshausen


Thesis
To obtain the academic degree
Dr. rer. pol.


Integration, Regulation, and
Corporate Governance in the EU Banking Sector
















Name: Matthias Köhler
Address: Marstallstr. 49f, 68723 Schwetzingen
Submitted to: Prof. Reint Gropp, PhD and Prof. Dr. Falko Fecht ission Date: 09.03.2010


























Acknowledgement

First of all, I am sincerely grateful to Reint Gropp. I would like to thank
him for spending a part of his time on issues related to my thesis and for
being available for numerous meetings. It is fair to say that he put me on the
right track to research and writing. Second, I would like to thank Falko
Fecht for being the second supervisor of my thesis and for making it
possible to join the doctoral programme at the European Business School
(EBS). I am also thankful to Mrs. Zapp-Roussel. She immediately answered
numerous questions on the doctoral programme and organizational issues at
the EBS. Furthermore, I would like to thank Claudia Buch for supervising
me at the first stage of my dissertation. I am also thankful to Michael
Schröder for always supporting my work and for encouraging me to present
it at conferences and workshops. Together with my other colleagues he has
created a friendly and supportive atmosphere at the ZEW. I also highly
appreciate the comments of several seminar and conference participants.
Finally and most importantly, I would like to thank my parents for their
love and for always supporting me at all of my decision I made during my
life.

Matthias Köhler


























Integration, Regulation,
and Corporate Governance
in the EU Banking Sector

Matthias Köhler
Content
__________________________________________________________________

CHAPTER 1
Introduction

CHAPTER 2
International Capital Mobility and Current Account Targeting in Central and
Eastern European Countries
1 Introduction 9
2 Measuring Financial Integration 10
3 Saving Rates, Investment Rates, and the Current Account 13
4 Savings and Investment Correlations in the CEEC-5 15
5 International Capital Mobility in the CEEC-5: The Feldstein-Horioka
Approach 16
6 The Feldstein-Horioka Approach and Current Account Targeting 21
7 Current Account Targeting in the CEEC-5 26
8 Conclusions 28

CHAPTER 3
Merger Control as Barrier to Integration: Transparency of Regulation and
Cross-Border Bank Mergers
1 Introduction 30
2 The Integration of EU Banking Markets 33
3 Motives and Barriers to Consolidation in the EU Banking Sector 35
4 Merger Control in the EU Banking Sector 39
4.1 Prudential Assessment of M&A in the EU Banking Sector 40
4.2 Directive Proposal of the EU Commission 41
5 Indices on Merger Control 42
5.1 Independence of the Supervisory Authority Index 44
5.2 Transparency of Merger Control Index 46
5.3 Frequency of Merger Control Index 49
6 Merger Control and Cross-Border Consolidation in the EU Banking
Sector 52
7 Data and Econometric Model 58
7.1 Data
7.2 Econometric Model 59
8 Determinants of M&A in the EU Banking Sector 61
8.1 Bank Characteristics 61
8.2 Explicit and Implicit Barriers to M&A in the Banking Sector 65
8.3 Other Country Characteristics 67
9 Results 69
10 Robustness Checks 75
11 Conclusions 76

CHAPTER 4
Ownership Structure, Regulation, and the Market for Corporate Control in the
EU Banking Sector
1 Introduction 78
2 Ownership Structures in the EU Banking Sector 81
3 Corporate Governance Regulation in the EU 86
3.1 Transparency Directive 87
3.2 Takeover Directive 89
3.2.1 The Mandatory Bid Rule
3.2.2 The Board Neutrality Rule 91
3.2.3 The Breakthrough Rule 92
3.2.4 The Squeeze-Out Rule and Sell-Out Rule 94
4 Conclusions 97

CHAPTER 5
Bank Owners or Bank Managers: Who is Keen on Risk? Evidence From the
Financial Crisis
1 Introduction 100
2 Data and Econometric Model 105
2.1. Data 105
2.2. Econometric Model and Main Variables 107
3 Descriptive Statistics 110
3.1 Ownership Concentration in the OECD Banking Sector 110
3.2. Bank Performance and Bank Risk-Taking 113
4 Baseline Results 115
5 Bank Characteristics 119
6 Banking Regulation and Supervision 123
7 Other Country Characteristics 126
8 Profit Smoothing and Bail-Outs 128
9 Conclusions 131

References 133
Appendix 152
List of Tables
____________________________________________
Table 1: Correlation Coefficients between Domestic Savings and Investment
Rates 16
Table 2: Domestic Savings and Investment Correlations 18
Table 3: Private and Public Savings and Investment Correlations 24
Table 4: ADF Tests of the Current Account 26
Table 5: Summary Statistics for the Independence of the Supervisory Authority
Index 46
Table 6: Summary Statistics for the Transparency of Merger Control Index 49
Table 7: Summary Statistics for the Frequency of Merger Control Index 52
Table 8: Total Number of Deals and Total Deal Value of Domestic and Cross-
Border M&A in the EU Banking Sector 53
Table 9: Average Deal Size of Domestic and Cross-Border M&A in the EU
Banking Sector 54
Table 10: Market Share of Foreign Banks in the EU Banking Sector 55
Table 11: Correlation Analysis 57
Table 12: Banks and Deals by Country 60
Table 13: Deals by Year of Completion
Table 14: Summary Statistics 64
Table 15: Logit Regression 70