Financial behavior decision for mergers and acquisitions in European financial institutions after the COVID-19 pandemic

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Abstract

This work trying to solve the problem of uncertainty of the effect of financial behavioral (Asaoka, 2019) on mergers and acquisitions (M&A) examines the deal size values in completed mega M&A of the European financial institutions in 2023 with 99 cases. The aim of this paper is to specify the correlation between deal size values in the completion of mega M&A in 2023 and the most important financial factors used in such processes that leads to a financial behavior decision. The methodology used highlights with cross-sectional analysis, correlation matrix, and descriptive statistics for better results (Zientek & Thompson, 2009). The findings according to the Pearson correlation coefficient show that all the selected independent variables can be used in the econometric model because there is a significant statistical positive and negative correlation between the values of the deal size and the selected financial factors. The contribution of the present study lies in the presentation of such information in a short time period. Concluding the paper direct the bidders how to make rational decisions after the COVID-19 pandemic.

Keywords: Mergers & Acquisitions, Investment Banking, Institutional Inventors Financial Behavior

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G23, G24, G34

Received: 06.11.2024
Revised: 24.12.2024; 13.03.2025
Accepted: 19.03.2025
Published online: 21.03.2025

How to cite this paper: Kyriazopoulos, G. (2025). Financial behavior decision for mergers and acquisitions in European financial institutions after the COVID-19 pandemic [Special issue]. Risk Governance & Control: Financial Markets & Institutions, 15(1), 249–258. https://doi.org/10.22495/rgcv15i1sip10