The profit-structure relationship, efficiency and mergers in the European banking industry: an empirical assessment

摘要: An empirical investigation of the relationship between market share or concentration and return on equity assets provides evidence for existence a profit-structure in European banking sector. Testing several market-power efficient-structure theories reveals that X-efficiency is crucial factor explaining because it stimulates both profitability share. Bank mergers recent years have been successful because, average, improved after consolidation. Moreover, there are no indications unfavourable price setting behaviour as result increased power.