Successful Cross-border Acquisitions of Latin American Financial Institutions: Identifying Success Factors

2012 ◽  
Vol 4 (3) ◽  
pp. 347-367 ◽  
Author(s):  
C. Bülent Aybar ◽  
Wendy M. Jeffus ◽  
John C. Edmunds
Keyword(s):  
Latin American ◽  
Financial Institutions ◽  
Success Factors ◽  
Market Access ◽  
Shareholder Wealth ◽  
Wealth Effects ◽  
Cross Sectional ◽  
Foreign Companies ◽  
Study Methodology ◽  
Insight Into

This article examines the shareholder wealth effects for foreign companies that announce acquisitions of financial institutions in Latin America. We examine data for 636 transactions for the period 1985–2009. We employ event study methodology coupled with a cross-sectional regression to determine if shareholders of the acquiring firm receive positive returns. The results indicate that acquirers receive positive returns when the acquisition involves a target bank in a market with low market access, high market risk, and greater control post acquisition. These findings offer improvements on previously examined variables and provide insight into a market not sufficiently examined in prior research.

scholarly journals Information Sharing Alliances in the Airline Industry: An Examination of Code Sharing Agreements

2005 ◽  
Vol 6 (1) ◽  
pp. 85-107
Author(s):  
Wonseok Woo
Keyword(s):  
Information Sharing ◽  
Stock Returns ◽  
Airline Industry ◽  
Shareholder Wealth ◽  
Wealth Effects ◽  
Organizational Information ◽  
Code Sharing ◽  
Study Methodology ◽  
Major Airlines ◽  
Event Study Methodology

This paper addresses the issue of inter-organizational information-sharing alliances and their impacts on firm values from the perspective of inter-organizational coordination between partners in the airline industry setting. We investigate the shareholder wealth effects of inter-organizational information-sharing alliance arrangements, using 131 cede sharing agrc.unems in the airline industry betwcm 1984-1997. Employing event study methodology, we find that the information-sharing alliances between similar partners did create positive value in terms of stock returns at the time of alliance announcements to major US airlines. However, alliances between dissimilar partners resulted in significant losses of shareholder value to the major airlines. These results strongly support our main hypotheses, that information- sharing alliances arc successful and the benefits of such alliances are realized only when coordination difficulties can be effectively dealt with.

Wealth Effects of Retail Store Closure Announcements

2020 ◽  
Vol 23 (02) ◽  
pp. 2050013
Author(s):  
Abdul-Rahman Khokhar
Keyword(s):  
Stock Price ◽  
Market Reaction ◽  
Wealth Effects ◽  
Cross Sectional ◽  
Price Reaction ◽  
Stock Market Reaction ◽  
Announcement Date ◽  
Stock Price Reaction ◽  
Study Methodology ◽  
Sectional Analysis

This is the first study, to the best of our knowledge, to use value- and equal-weighted portfolios of U.S. retail firms to examine the stock market reaction to strategic and nonliquidating store closure announcements. Using event study methodology for a sample of 174 hand-collected store closure announcements during the period 1980–2017, we find a negative and significant stock price reaction on the announcement date. Given the highly competitive nature of the retail industry, we further investigate the market reaction for the closest competitors using a matched sample of 157 competing firms. We report a positive, albeit less significant stock price reaction for competing retail firms on the announcement date. Finally, a cross-sectional analysis shows that the stock price reaction to store closure announcements is positively associated with firm size.

scholarly journals Shareholder wealth effects and corporate name change: Evidence from Malaysia

2004 ◽  
Vol 2 (1) ◽  
pp. 38-49 ◽  
Author(s):  
Yusuf Karbhari ◽  
Zulqarnain Mohamad Sori ◽  
Shamsher Mohamad
Keyword(s):  
Abnormal Returns ◽  
Shareholder Wealth ◽  
Wealth Effects ◽  
Name Change ◽  
Announcement Date ◽  
Corporate Name Change ◽  
Study Methodology ◽  
Shareholder Wealth Effect ◽  
Name Changes ◽  
Event Study Methodology

This study seeks to evaluate the shareholder wealth effect of corporate name change by Malaysian listed companies. Our sample comprises both failed and non-failed Malaysian companies and standard event study methodology is employed. Our results indicate that corporate name changes have no impact on shareholder wealth unless the announcement is accompanied with news of approved corporate restructuring by Malaysian regulatory authorities. In addition, extraordinary abnormal returns were found on the announcement day for the failed companies group whilst, the sub-sample of non-failed companies experienced a significant low negative abnormal return around the announcement date indicating disapproval of cosmetic name changes. Investors in Malaysia are generally cautious about receiving news of a corporate name change. The study also suggests that the market cannot be fooled by mere name change; such a change must be backed by serious efforts towards recovery.

Application of Statutes of Limitations to Islamic Banking: The Case of Malaysia

2020 ◽  
Vol 17 (1) ◽  
pp. 56-69
Author(s):  
Aishath Muneeza ◽  
Zakariya Mustapha
Keyword(s):  
Qualitative Research ◽  
Financial Institutions ◽  
Research Methodology ◽  
Islamic Law ◽  
Islamic Banking ◽  
Legal Action ◽  
Qualitative Research Methodology ◽  
The Right ◽  
Limitation Of Action ◽  
Insight Into

Limitations of action designate extent of time after an event, as set by statutes of limitations, within which legal action can be initiated by a party to a transaction. No event is actionable outside the designated time as same is rendered statute-barred. This study aims to provide an insight into application and significance of Limitations Act 1950 and Limitation Ordinance 1952 to Islamic banking matters in Malaysia as well as Shariah viewpoint on the issue of limitation of action. In conducting the study, a qualitative research methodology is employed where reported Islamic banking cases from 1983 to 2018 in Malaysia were reviewed and analysed to ascertain the application of those statutes of limitations to Islamic banking. Likewise, relevant provisions of the statutes as invoked in the cases were examined to determine possible legislative conflicts between the provisions and the rule of Islamic law in governing the right and limitation of action in Islamic banking cases under the law. The reviewed cases show the extent to which statutes of limitations were invoked in Malaysian courts in determining validity of Islamic banking matters. The limitation provisions so referred to are largely sections 6(1)(a) and 21(1) Limitations Act 1953 and section 19 Limitation Ordinance 1953, which do not conflict with Shariah viewpoint on the matter. This study will prove invaluable to financial institutions and their customers alike in promoting knowledge and creating awareness over actionable event in the course of their transactions.

Payment Habits as a Determinant of Retail Payment Innovations Diffusion: the Case of Poland

2013 ◽  
Vol 1 (2) ◽  
pp. 86-102 ◽  
Author(s):  
Janina Harasim ◽  
Monika Klimontowicz
Keyword(s):  
Financial Institutions ◽  
Success Factors ◽  
Market Development ◽  
Opportunities To Learn ◽  
Payment Systems ◽  
Global Trends ◽  
Innovative Methods ◽  
Preferred Providers ◽  
Polish Experience ◽  
Empirical Foundation

New and innovative methods for electronic funds transfer are emerging globally. These new payment tools include extensions of the established payment systems as well as new payment methods that are substantially different from traditional transactions. They have made the retail payments faster, cheaper, easier and more convenient for customers. Simultaneously, these payment innovations influence retail payment market around the world. During the last few decades it has changed remarkably and has become a very competitive one. Financial institutions are increasingly in competition with technology companies and other organizations to be the preferred providers of consumer payment services. There are huge differences between retail payment markets in developing countries and those in the mature markets. Payment habits are mostly influenced by local cultural drivers, so global trends are few and far between. Nevertheless, as consumer expectations and habits are becoming more homogenized and financial institutions start to be interested in new markets, the opportunities to learn from the experiences of other economies appear. The paper discusses theoretical and empirical foundation of retail payment innovations diffusion, presents the retail payment taxonomy and the results of a survey held in Poland in 2013. It is concluded that Polish experience can be assessed as a benchmark for searching determinants of retail payment markets development. However, copying success factors for sustainable market development is rather impossible with regard to payment culture, experiences and habits.

Socio-Demographic Factors and Health-Related Behaviors Associated with Gerontology

GIS Business ◽  
2019 ◽  
Vol 14 (6) ◽  
pp. 359-370
Author(s):  
Dr. Ravi S. Dalawai
Keyword(s):  
Cross Sectional Study ◽  
Work Culture ◽  
Chi Square ◽  
Cross Sectional ◽  
The Social ◽  
Health Related ◽  
Chi Square Test ◽  
Current Scenario ◽  
Socio Demographic Factors ◽  
Insight Into

Indian population is in growing trend from 942.2 million in 1994 to 1.36 billion in 2019.Among this six per cent of India's population was of the age 65 and above (UNFPA, 2019). Today the work culture is totally changed. Both husband and wife are forced to work in the current scenario and unable to take care of their parents. The changing structure created increased problems for old age people leads to loneliness, psychological, physical health and financial insecurity. The study paper provides insight into the social and demographic factor and health related sickness of the oldest people. This research explained the cross-sectional study included a representative sample (n=116) of adults aged ≥60 years. The sample was chosen using a four-stage stratified random-cluster survey sampling method .The Chi Square test and ANOVA test was analyzed using SPSS20.

Diversity and the Performance of Selected Financial Institutions of Asia

2018 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Shafaque Fatima ◽  
Saqib Sharif
Keyword(s):  
Financial Institutions ◽  
Positive Impact ◽  
Financial Institution ◽  
Gender Diversity ◽  
Business Case ◽  
Ordinary Least Squares ◽  
Cross Sectional ◽  
Age Diversity ◽  
The Impact ◽  
Nationality Diversity

Linking with the business case for diversity, this study examines whether the top management team (TMT) and the board of directors (BODs) diversity has a positive impact on financial institution (FI) performance in select countries of Asia least researched domain. We use data from 119 financial institutions across Asia for the year 2015, initially 1,447 institutions; however, incomplete data was excluded from final analysis. We use three proxies for diversity, that is, nationality diversity, gender diversity, and age diversity of TMT and BODs. To investigate the impact of TMT and BODs diversity, cross-sectional ordinary least-squares estimation is applied, using Return on Average Assets (ROAA%) as a measure of performance.  We find that nationality diversity and age diversity is positively and significantly related to FIs performance. Our evidence indicates that executives and board members with diverse exposure and younger age improve FIs profitability. However, there is no significant relationship between gender and FIs performance.

scholarly journals Trends in social inequalities in breastfeeding and infant formulas in Latin American countries between the 1990 and 2010 decades

2021 ◽  
pp. 1-10
Author(s):  
Camila S Ferreira ◽  
Catarina M Azeredo ◽  
Ana Elisa M Rinaldi
Keyword(s):  
Dominican Republic ◽  
Social Inequality ◽  
Latin American ◽  
Low Income ◽  
Social Inequalities ◽  
Weighted Least Squares ◽  
Cross Sectional Study ◽  
Demographic And Health Surveys ◽  
Cross Sectional ◽  
Simultaneous Decrease

Abstract Objective: To analyse trends of social inequality in breastfeeding and infant formula (IF) use in Latin America between 1990 and 2010 decades. Design: Time-series cross-sectional study with data from Demographic and Health Surveys. We described the prevalence of exclusive breastfeeding (EBF), breastfeeding between 6 and 12 months (BF6-12) and IF for infants under 6 months (IF < 6) and between 6 and 12 months (IF6-12). Social inequalities were assessed using the slope index of inequality (SII) and concentration index (CIX). Trends in the prevalence of breastfeeding, IF and index of social inequality were analysed by a linear regression model with weighted least squares variance. Setting: Bolivia, Colombia, Dominican Republic, Guatemala, Haiti and Peru. Participants: 51·358 alive infants younger than 12 months. Results: Five countries showed an increasing trend for EBF and BF6-12, four increased for IF < 6 and six for IF6-12. Simultaneous decrease in IF < 6 (Colombia: −0·3/year; Haiti: −0·02/year) and increase in EBF (Colombia: +2·0/year; Haiti: +1·9/year) were observed only in two countries. EBF prevalence was high in the lowest income quintiles in five countries, and IF prevalence was high in the highest income quintiles in all countries and over the decades. For BF6-12, a decrease in inequality (prevalence increased in the highest quintile) was observed in Guatemala (SII1995 = −0·42; SII2015 = −0·28) and the Dominican Republic (SII1996 = −0·54; SII2013 = −0·26). Guatemala was the only country showing a decrease in inequality for BF (SII = −0·005; CIX = −0·0035) and an increase for IF (SII = 0·022; CIX = 0·01). Conclusions: The inequality in BF and IF remained over time. However, inequality in IF < 6 has decreased because low-income infants have increased use and high-income infants have decreased.

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