scholarly journals THE SHORT- AND LONG-TERM VALUE GAINS TO ACQUIRERS OF EMERGING MARKET TARGETS IN MERGERS AND ACQUISITION DEALS

2021 ◽  
Vol 9 (1) ◽  
pp. 1-18
Author(s):  
Emmanuel Okofo-Dartey ◽  
◽  
Lungile Ntsalaze ◽  
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Estimation Method ◽  
The Body ◽  
Omitted Variables ◽  
Growth Opportunities ◽  
Short Term ◽  
Firm Level

This study investigates whether the acquisition of targets from the emerging markets impacts the short-term and long-term value gains of these targets' acquirers in terms of their profitability and growth opportunities. The study uses firm-level data of 93 listed acquirers of targets from the emerging markets sourced from the Bloomberg Terminal from 2003 to 2018. It employs the difference generalized method of moments (GMM) for analysis. This dynamic panel estimation method takes care of endogeneity problems, omitted variables, and error measurements. The study reveals that, broadly, the acquirers' profitability levels improve in the short-term after merger and acquisition (M&A) deals. This improvement in the acquirers' profitability levels occurs in the 1 st, 4th and 5th year periods within the short-term after their M&A transactions are completed. Regarding growth opportunities, acquirers of targets from the emerging markets experience both negative and positive returns on their short-term growth opportunities. However, they experience significant positive returns on their growth opportunities in the long-term. Our paper complements and contributes to the body of knowledge on international market entry and have implication for potential acquirers interested in investment opportunities in the emerging markets.

scholarly journals Liquidity regulations and bank behavior: An emerging markets perspective

2021 ◽  
Vol 10 (4, special issue) ◽  
pp. 194-211
Author(s):  
Tafirei Mashamba
Keyword(s):  
Emerging Markets ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Emerging Market Economies ◽  
Basel Iii ◽  
Market Economies ◽  
Coverage Ratio ◽  
The Impact

The 2007 to 2009 global financial crisis significantly affected the funding structures of banks, especially internationally active ones (Gambacorta, Schiaffi, & Van Rixtel, 2017). This paper examines the impact of liquidity regulations, in particular, the liquidity coverage ratio (LCR), on funding structures of commercial banks operating in emerging markets over the period 2011 to 2016. Similar to Behn, Daminato, and Salleo (2019) who developed a dynamic partial equilibrium model to examine capital and liquidity adjustments, this paper develops three dynamic error component adjustment models and estimates them using the two-step system generalized method of moments (GMM) estimator to analyze funding adjustments adopted by banks in emerging markets in response to the LCR requirement. The results revealed that banks in emerging markets responded to binding liquidity regulations by increasing deposit, equity as well as long-term funding. In terms of the magnitude of response, deposit funding was found to be more responsive to the LCR rule while the elasticity of equity and long-term funding to the LCR specification was found to be weak. The weak response of equity and long-term funding to liquidity standards was attributed to low levels of capital market development in emerging markets (Bonner, van Lelyveld, & Zymek, 2015). By and large, the results suggest that Basel III liquidity regulations have been effective in persuading banks in emerging market economies to fund their business activities with stable funding instruments. Based on this evidence, the study supports the adoption of Basel III liquidity regulations in emerging markets. Moreover, policymakers in emerging market economies should monitor competition for retail deposits to safeguard the benefits of the LCR rule and pay more attention to developing capital markets.

scholarly journals Post-Acquisition Performance of Emerging Market Firms: A Multi-Dimensional Analysis of Acquisitions in India

2021 ◽  
Vol 14 (12) ◽  
pp. 567
Author(s):  
Arindam Das
Keyword(s):  
Structural Equation ◽  
Emerging Market ◽  
Empirical Studies ◽  
Short Term ◽  
Firm Level ◽  
Acquisition Performance ◽  
Long Term Performance ◽  
Term Performance ◽  
A Performance

M&A performance is a multifaceted, compound construct with no overarching factor that captures all different dimensions. This paper examines the concept of acquisition performance and proposes a model that links firm-level factors and transaction parameters with firms’ short-term and long-term performance, extending to financial-, market- and innovation measures. Building on past empirical studies on the influence of various factors on M&A performance, a multi-dimensional structural equation model has been developed and it has been tested with a dataset on acquisitions in the Indian technology sector over a period of ten years. The results suggest that: (a) smaller acquirers with higher book value and leveraged firms demonstrate better long-term performance; (b) contrary to established understanding, short-term market returns are not influenced by deal parameters; (c) majority stake purchases show relatively lesser gains—suggesting the possible presence of post-acquisition integration issues and, (d) acquirers with high intangible assets continue to do well on innovation performance post-acquisition. By indicating situations and conditions under which an acquisition would potentially lead to a performance gain for the acquirer, these results provide significant insight to practitioners pursuing M&As for growth opportunities.

scholarly journals Test for cointegration and causality between ISE and emerging market ındices; diversification opportunities for ınvestorsBİST ile yükselen piyasalara ait endeksler arasındaki eş bütünleşme ve nedenselliğin test edilmesi; yatırımcılar açısından çeşitlendirme fırsatları

2017 ◽  
Vol 14 (4) ◽  
pp. 3486
Author(s):  
Umut Burak Geyikçi
Keyword(s):  
Emerging Markets ◽  
Capital Market ◽  
Emerging Market ◽  
Structural Break ◽  
Unit Root Tests ◽  
Cusum Test ◽  
Short Term ◽  
Causality Test ◽  
Johansen Cointegration Test

It was aimed to show the diversification possibilities that investors can catch in terms of emerging markets in the study. Within the scope of the study, the emerging markets of Turkey, Europe, Asia and America were compared. A total of 12 markets, 4 from Europe, 1 from the Americas and 7 from Asia were selected. Monthly closing values for the capital market were used for 16 years period (176 observations) for July 2002 - June 2017. The series were tested with the ADF, PP and Zivot andrews unit root tests, then Johansen Cointegration test and Wector Erroro Correction/Granger Causality test were used after it was found that there was no structural break with the Cusum test. As a result of the research, all the markets are found cointegrated in the long term. In a short term it is found that Turkey has mutual causality with Thailand, Russia, Poland, Brazil and also Taiwan, Malaysia and Czechia have one-way causality with Turkey. As a result, it can be said that there is no short-term causality relation with some emerging markets with the ISE and that it is possible to diversify in the short term in terms of investors.Extended English abstract is in the end of PDF (TURKISH) file. ÖzetBu çalışma ile yatırımcıların yükselen piyasalar açısından yakalayabilecekleri çeşitlendirme imkanları ortaya konmaya çalışılmıştır. Çalışma kapsamında Türkiye ile Avrupa, Asya ve Amerika kıtasında yer alan yükselen piyasalar karşılaştırılmıştır. Bu amaçla 4’ü Avrupadan, 1’i Amerikadan, 7’si de Asyadan olmak üzere toplamda 12 piyasa seçilmiştir. Temmuz 2002 – Haziran 2017 dönemine ait 16 yıllık periyotta (176 gözlem) sermaye piyasasına ait aylık kapanış değerleri kullanılmıştır. Gerçekleştirilen çalışmada önce ADF, PP ve Zivot-Andrews birim kök testleri ile seriler test edilmiş, sonrasında Cusum testi ile yapısal kırılma olmadığı anlaşıldıktan sonra, Johansen Eşbütünleşme testi ve ardından da Vektör Hata Düzeltme/Granger Nedensellik Testi kullanılmıştır. Araştırma neticesinde incelenen tüm piyasaların uzun dönemde eşbütünleşik oldukları, kısa dönemde ise Türkiye’nin Taylan, Rusya, Polonya ve Brezilya ile karşılıklı, Tayvan, Malezya ve Çekya’nın ise Türkiye ile tek yönlü bir nedensellik ilişkisinde olduğu tespit edilmiştir. Bu çerçevede, BİST’in inceleme kapsamındaki bazı yükselen piyasalarla kısa dönemde nedensellik ilişkisi bulunmadığı ve yatırımcılar açısından kısa vadede hali hazırda bir çeşitlendirme imkanı sunduğu söylenebilmektedir.  

scholarly journals The Relationship Between Leverage, Maturity, and Investment Decision: Evidence From Emerging Markets

2019 ◽  
Vol 10 (1) ◽  
pp. 147-164 ◽  
Author(s):  
Vina Christina Nugroho ◽  
Kim Sung Suk
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Investment Decision ◽  
Debt Maturity ◽  
Short Term ◽  
Non Linear ◽  
Linear Effects ◽  
Different Characteristics ◽  
The Relationship

In this paper, we examine simultaneous relationship between leverage, maturity and over(under)- investment in emerging markets. We divide leverage into short term and long term to investigate the relation between current and future simultaneous relationship between leverage and investment decision, between debt maturity and investment decision, and between leverage and debt maturity. This research used twenty emerging market data from 2006 – 2016. First of all, our results show that firms in emerging markets prefer to use short-term debt to long-term debt to minimize the underinvestment problem. Second, there is a simultaneous non-linear relation between long-term leverage and growth opportunities in emerging markets firms. Third, long-term debt has non-linear effects on investment decision in emerging markets firms. It can be concluded that firms in emerging markets have different characteristics with regard to their capabilities to manage the interaction between leverage, maturity and investment compared to developed markets.

Contemporaneous or causal? Evaluating the triumvirate of insolvency risk, capitalization and efficiency in Indian commercial banking

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Navendu Prakash ◽  
Shveta Singh ◽  
Seema Sharma
Keyword(s):  
Cost Efficiency ◽  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Commercial Banking ◽  
Seemingly Unrelated Regression ◽  
Bank Capital ◽  
Short Term ◽  
Content Type ◽  
Insolvency Risk

PurposeThis paper empirically examines the short-term and long-term associations between risk, capital and efficiency (R-C-E) in the Indian banking sector across 2008–2019 to answer the presence of causation or contemporaneousness in the R-C-E nexus.Design/methodology/approachThe paper focuses on three objectives. First, the authors determine short-term causality in the risk–efficiency relationship by studying the simultaneous influence of a wide array of banking risks on DEA-based technical and cost efficiency in static and dynamic situations. Second, the authors introduce bank capital and contemporaneously determine the interplay between R-C-E using seemingly unrelated regression equation (SURE) and three-staged least squares (3SLS). Last, the authors assess stability in inter-temporal associations using Granger causality in an autoregressive distributed lag (ARDL) generalized method of moments (GMM) framework.FindingsThe authors contend that high capital buffers reduce insolvency risk and increase bank stability. Technically efficient banks carry lesser equity buffers, suggesting a trade-off between capital and efficiency. However, capitalization makes banks more technically efficient but not cost-efficient, implying that over-capitalization creates cost inefficiencies, which, in line with the cost skimping hypothesis, forces banks to undertake risk. Concerning causal relationships, the authors conclude that inefficiency Granger-causes insolvency and increases bank risk. Further, steady increases in capital precede technical and cost efficiency improvements. The converse also holds as more efficient banks depict temporal increases in capitalization levels.Originality/valueThe paper is perhaps the first that acknowledges the influence of the “time” perspective on the R-C-E nexus in an emerging economy and advocates that prudential regulations must focus on short-term and long-term intricacies among the triumvirate to foster a stable banking environment.

scholarly journals Lalabet Financial Analysis: Study of Islamic Economics at Micro Level

2021 ◽  
Vol 4 (1) ◽  
pp. 233-244
Author(s):  
Ainorrofiqie Ainorrofiqie ◽  
Umrotul Khasanah ◽  
Akhmad Djalaluddin
Keyword(s):  
Financial Management ◽  
Financial Analysis ◽  
Financial Statements ◽  
The Body ◽  
Short Term ◽  
The Family ◽  
Micro Level ◽  
The Impact ◽  
The Village

This research aims to explore the model of financial management tradition Lalabet in the village of Babbalan District Batuan Sumenep. This study is based on the fact that occurred in the community about the implementation of traditions carried out by the heirs to family members who died. Interpretative qualitative research is used and an in-depth understanding of a problem that occurs is emphasized more. Based on the results of this study, the financial management tradition Lalabet can be done based on accounting equations. The accounts contained in the accounting equation is not used in its entirety and are reported as are generally financial statements. In this case, the source of funds in carrying out Lalabet tradition is sourced from personal money, money and donations from the family, money from Muslimat, debt, and money or goods from Lalabet's proceeds. The impact is the onset of debt both short-term and long-term. While the expenditure is in the form of costs in taking care of the body, costs for tahlilan (petto'arean), pa'polo, nyatos, nyataon, nyaebu, mangaji, ngin-tangin, nyalenin mayyid, and ajege makam (kep-sekep).

scholarly journals The Immune System Can Hear Noise

2021 ◽  
Vol 11 ◽  
Author(s):  
Andi Zhang ◽  
Tianyuan Zou ◽  
Dongye Guo ◽  
Quan Wang ◽  
Yilin Shen ◽  
...  
Keyword(s):  
Immune System ◽  
Adverse Effects ◽  
Immune Function ◽  
Noise Exposure ◽  
The Body ◽  
Intensity Noise ◽  
Short Term ◽  
Non Hodgkin Lymphoma ◽  
Exposure During Pregnancy

As a stressor widely existing in daily life, noise can cause great alterations to the immune system and result in many physical and mental disorders, including noise-induced deafness, sleep disorders, cardiovascular diseases, endocrine diseases and other problems. The immune system plays a major role in maintaining homeostasis by recognizing and removing harmful substances in the body. Many studies have shown that noise may play vital roles in the occurrence and development of some immune diseases. In humans, both innate immunity and specific immunity can be influenced by noise, and different exposure durations and intensities of noise may exert various effects on the immune system. Short-term or low-intensity noise can enhance immune function, while long-term or high-intensity noise suppresses it. Noise can lead to the occurrence of noise-induced hearing loss (NIHL) through the production of autoantibodies such as anti-Hsp70 and anti-Hsp60 and exert adverse effects related to other immune-related diseases such as some autoimmune diseases and non-Hodgkin lymphoma. The neuroendocrine system, mainly including the hypothalamic-pituitary-adrenal (HPA) axis and the sympathetic-adrenal-medullary (SAM) system, is involved in the mechanisms of immune-related diseases induced by noise and gut microbiota dysfunction. In addition, noise exposure during pregnancy may be harmful to the immune system of the fetus. On the other hand, some studies have shown that music can improve immune function and alleviate the adverse effects caused by noise.

scholarly journals Renewing the Body of Christ: Sharing of Ministries Abroad (SOMA) USA and Transnational Charismatic Anglicanism, 1978–1998

2017 ◽  
Vol 51 (4) ◽  
pp. 1243-1266
Author(s):  
JOHN MAIDEN
Keyword(s):  
The Body ◽  
Body Of Christ ◽  
Short Term ◽  
Global Mission ◽  
National Body ◽  
Global North ◽  
Late Twentieth ◽  
Global Church ◽  
Late Twentieth Century

Sharing of Ministries Abroad (SOMA) was formed in the late 1970s as an international organization for the cultivation of charismatic renewal amongst leaderships within the global Anglican Communion. This article explores the ethos and activities of its American national body. It argues that its short term, cross-cultural missions increasingly displayed mutuality and long-term partnership rather than one-directional American influence, and thus reflected a developing shift in the understanding and practice of global mission in the late twentieth century. The organiztion shaped awareness of the global Church amongst some US Episcopalians and constructed an influential transnational network within charismatic Anglicanism. Furthermore, SOMA's network was one context for the emergence of global North–South conservative solidarity in the politics of the Anglican Communion.

scholarly journals Innovating with Limited Resources: The Antecedents and Consequences of Frugal Innovation

2019 ◽  
Vol 11 (20) ◽  
pp. 5789 ◽  
Author(s):  
Quan Cai ◽  
Ying Ying ◽  
Yang Liu ◽  
Wei Wu
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Value Added ◽  
Resource Constrained ◽  
Firm Level ◽  
Value Innovation ◽  
Frugal Innovation ◽  
Innovation Cost ◽  
Emerging Market Firms ◽  
Antecedents And Consequences

Frugal innovation is a resource scarce solution for emerging market firms. Based upon the resource-constrained innovation perspective, this research theoretically explores and empirically examines the drivers and consequences of frugal innovation. The results of a firm-level survey show that two types of frugal innovation (cost innovation and affordable value innovation) positively affect the performance of emerging-market firms. We also address the issues of how emerging-market firms deal with institutional, technological, and market constraints in emerging markets, and we show how these constraints drive frugal innovation. We find that emerging-market firms with higher levels of capability for institutional leverage and bricolage, and firms that face perceived dysfunctional competition, tend to generate more affordable, value-added new products. Overall, these findings have important implications for emerging-market firms seeking to conduct frugal innovation in resource-constrained emerging markets.

LONG-TERM MEMORY IN EMERGING MARKETS: EVIDENCE FROM THE CHINESE STOCK MARKET

2006 ◽  
Vol 05 (03) ◽  
pp. 495-501 ◽  
Author(s):  
CHAOQUN MA ◽  
HONGQUAN LI ◽  
LIN ZOU ◽  
ZHIJIAN WU
Keyword(s):  
Stock Market ◽  
Emerging Markets ◽  
Emerging Market ◽  
Long Term Memory ◽  
Chinese Stock Market ◽  
Market Returns ◽  
Stock Market Returns ◽  
Term Memory ◽  
Rescaled Range Analysis

The notion of long-term memory has received considerable attention in empirical finance. This paper makes two main contributions. First one is, the paper provides evidence of long-term memory dynamics in the equity market of China. An analysis of market patterns in the Chinese market (a typical emerging market) instead of US market (a developed market) will be meaningful because little research on the behaviors of emerging markets has been carried out previously. Second one is, we present a comprehensive research on the long-term memory characteristics in the Chinese stock market returns as well as volatilities. While many empirical results have been obtained on the detection of long-term memory in returns series, very few investigations are focused on the market volatility, though the long-term dependence in volatility may lead to some types of volatility persistence as observed in financial markets and affect volatility forecasts and derivative pricing formulas. By means of using modified rescaled range analysis and Autoregressive Fractally Integrated Moving Average model testing, this study examines the long-term dependence in Chinese stock market returns and volatility. The results show that although the returns themselves contain little serial correlation, the variability of returns has significant long-term dependence. It would be beneficial to encompass long-term memory structure to assess the behavior of stock prices and to research on financial market theory.

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