Shareholder Wealth Effects and Bank Mergers and the Financial System PDF Download
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Author: Bert Scholtens
Publisher:
ISBN:
Category :
Languages : en
Pages : 37
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Author: Bert Scholtens
Publisher:
ISBN:
Category :
Languages : en
Pages : 37
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Author: Sascha Kolaric
Publisher: Corporate Finance and Governance
ISBN: 9783631670545
Category : Bank mergers
Languages : en
Pages : 0
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Book Description
This book offers a comprehensive analysis of the shareholder wealth effects of the financial sector consolidation in the Asia-Pacific region and its impact on the acquirer's cost of debt. The capital market reactions of the institutions directly involved in the M&A and their rivals are examined to evaluate the success of the consolidation process.
Author: Yakov Amihud
Publisher: Springer Science & Business Media
ISBN: 1475727992
Category : Business & Economics
Languages : en
Pages : 249
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Book Description
As the financial services industry becomes increasingly international, the more narrowly defined and historically protected national financial markets become less significant. Consequently, financial institutions must achieve a critical size in order to compete. Bank Mergers & Acquisitions analyses the major issues associated with the large wave of bank mergers and acquisitions in the 1990's. While the effects of these changes have been most pronounced in the commercial banking industry, they also have a profound impact on other financial institutions: insurance firms, investment banks, and institutional investors. Bank Mergers & Acquisitions is divided into three major sections: A general and theoretical background to the topic of bank mergers and acquisitions; the effect of bank mergers on efficiency and shareholders' wealth; and regulatory and legal issues associated with mergers of financial institutions. It brings together contributions from leading scholars and high-level practitioners in economics, finance and law.
Author: Gary Whalen
Publisher:
ISBN:
Category : Bank holding companies
Languages : en
Pages : 38
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Author: Manoj Anand
Publisher:
ISBN:
Category :
Languages : en
Pages :
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The study analyses five mergers in the Indian banking sector to capture the returns to shareholders as a result of the merger announcements using the event study methodology (Brown amp; Warner, 1980, 1985; and MacKinlay, 1997). These are merger of Times Bank with the HDFC Bank, Bank of Madura with the ICICI Bank, ICICI with the ICICI Bank, Global Trust Bank with the Oriental Bank of Commerce, and Bank of Punjab with the Centurion Bank. The Fama and Miller (1972) market model and Cox and Portes (1998) two-factor model form the theoretical framework of this study. The aim is to understand the shareholder wealth effects of bank mergers. Using the single-factor model the study finds that the average cumulative abnormal return (CAR) of the bidder banks is positive and substantial. These results are statistically significant also. Thus, the bidder banks got significant positive abnormal returns. The two-factor model results reveal that the merger announcement in the Indian private sector banks generated a positive and statistical significant CAR of 5.24%, 7.83% and 8.59% in a one-day, two-day, and three-day run-up window respectively to the shareholders of the bidder banks.The single-factor model finds that the combined CAR for all target banks is positive, significant and substantial. The combined CAR has been propped up due to very high CAR registered by Bank of Madura. The bidder banks created a wealth of Rs 4,117.98 million in a one day window (single-factor model) as a result of the merger announcements. In case of target banks, the shareholders of the Global Trust Bank and Bank of Punjab appear to be the losers as they lost Rs 382.55 million in a one day run up window (single-factor model) and Rs 128.74 million in a one-day window (single-factor model) respectively. Oriental Bank of Commerce and Global Trust Bank combined lost 14.78% in value on weighted average basis in a 11 days period (-5, 5) window. This merger was first major move to bail out sick bank.The merger announcements in the Indian banking industry have positive and significant shareholder wealth effect both for bidder banks and target banks. The market value weighted CAR of the combined bank portfolio as a result of merger announcement is 4.29% in a three-day period (-1, 1) window and 9.71% in 11-days period (-5, 5) event window.
Author: Ingo Walter
Publisher: Oxford University Press
ISBN: 9780198036067
Category : Business & Economics
Languages : en
Pages : 328
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Book Description
This book is intended to lay out, in a clear and intuitive as well as comprehensive way, what we know - or think we know - about mergers and acquisitions in the financial services sector. It evaluates their underlying drivers, factual evidence as to whether or not the basic economic concepts and strategic precepts are correct. It looks closely at the managerial dimensions in terms of the efficacy of merger implementation, notably the merger integration process. The focus is on enhancing shareholder value creation and the execution of strategies for the successful management of mergers. It also has a strong public-policy component in this "special" industry where successes can pay dividends and failures can cause serious problems that reach well beyond the financial services industry itself. The financial services sector is about halfway through one of the most dramatic periods of restructuring ever undergone by a major global industry. The impact of the restructuring has carried well beyond shareholders of the firms and involved into the domain of regulation and public policy as well as global competitive performance and economic growth. Financial services are a center of gravity of economic restructuring activity. M&A transactions in the financial sector comprise a surprisingly large share of the value of merger activity worldwide -- including only deals valued in excess of $100 million, during the period 1985-2000 there were approximately 233,700 M&A transactions worldwide in all industries, for a total volume of $15.8 trillion. Of this total, there were 166,200 mergers in the financial services industry (49.7%), valued at $8.5 trillion (54%). In all of restructuring frenzy, the financial sector has probably had far more than its share of strategic transactions that have failed or performed far below potential because of mistakes in basic strategy or mistakes in post-merger integration. It has also had its share of rousing successes. This book considers the key managerial issues, focusing on M&A transactions as a key tool of business strategy - "doing the right thing" to augment shareholder value. But in addition, the degree of integration required and the historic development of integration capabilities on the part of the acquiring firm, disruptions in human resources and firm leadership, cultural issues, timeliness of decision-making and interface management have co-equal importance - "doing it right."
Author: Thomas F. Siems
Publisher:
ISBN:
Category : Bank holding companies
Languages : en
Pages : 40
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Author: Beng Soon Chong
Publisher:
ISBN:
Category :
Languages : en
Pages :
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This study examines the impact of forced bank mergers on the shareholders' wealth of Malaysian banks. Forced bank mergers, which are the result of direct government intervention in the consolidation of the banking industry, are generally rare. Unlike the findings on voluntary mergers and acquisitions, our study shows that the forced merger scheme destroys economic value in aggregate and the acquiring banks tend to gain at the expense of the target banks. Further analysis shows that the contrasting forced merger finding is linked to cronyism.
Author: Gordon Roy Kerr
Publisher:
ISBN:
Category : Bank mergers
Languages : en
Pages : 192
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Author: Raymond Anthony King Cox
Publisher:
ISBN:
Category : Bank holding companies
Languages : en
Pages : 470
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