scholarly journals Analysis of Pre and Post Merger and Acquisition Financial Performance of Banks in Pakistan

2014 ◽  
Vol 6 (4) ◽  
pp. 177-190
Author(s):  
Qamar Abbas ◽  
Rashid Saeed . ◽  
Ehsan-Ul-Hassan . ◽  
Muhammad Shahzad Ijaz .
Keyword(s):  
Financial Performance ◽  
Banking Sector ◽  
Merger And Acquisition ◽  
Business Environment ◽  
Study Data ◽  
Financial Statement ◽  
Acquisition Performance ◽  
Significant Difference ◽  
Insignificant Difference ◽  
The Impact

Merger and Acquisition is a strategy adopted by the organizations globally to meet the needs of dynamic business environment. This strategy also has much importance in Pakistan mostly in banking sector. Therefore, the objective of the study is to assess the impact of M&A on the financial performance of banks in Pakistan. The accounting and financial data of 10 banks were used in this study. Data was taken from the financial statement analysis (FSA) by State Bank of Pakistan from the period of 20062011. For the analysis of pre and post Merger and Acquisition performance 15 financial ratios were used in the study. To compare the results Paired sample t-Test was used to measure the significant difference between pre and post M&A financial performance. The overall results show that there is no significant difference in financial performance. It is concluded that there is insignificant difference between pre and post M&A performance of banks in Pakistan.

The Impact of Accounting Information Systems on Performance Management in the Banking Sector

2021 ◽  
pp. 1-15
Author(s):  
Bilal Khalid ◽  
Michal Kot
Keyword(s):  
Information Systems ◽  
Financial Performance ◽  
Performance Management ◽  
Banking Sector ◽  
Accounting Information ◽  
Business Environment ◽  
Accounting Information Systems ◽  
Management Techniques ◽  
The Impact

This study investigated the impact of Accounting Information Systems (AIS) on performance management in Thailand’s banking sector. The study was necessitated by the need to understand the financial performance of banks in Thailand in application of advanced management techniques, business developments, growth of the current contemporary business environment and the intensive competitive business environment in the banking sector.

scholarly journals The Impact of Mergers and Acquisitions on Financial Performance of Banks in the Kingdom of Bahrain during 2004-15

2017 ◽  
Vol 9 (4) ◽  
pp. 34-45
Author(s):  
Bushra A. Abdulwahab ◽  
Subhadra Ganguli
Keyword(s):  
Financial Performance ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Financial Statements ◽  
Significant Difference ◽  
Before And After ◽  
Future Strategy ◽  
Rating Model ◽  
The Impact ◽  
Accounting Ratios

Following the 2007 global financial crisis, more than 15 M&A transactions took place among financial institutions in the kingdom of Bahrain. This paper evaluates the impact of M&As on the financial performance of four such deals between banks in Bahrain. Data was collected from financial statements of the banks and the Bankscope database during 2004–2015. 15 accounting ratios were applied to CAMEL Rating Model approach. Financial modelling with Excel has been applied to test for the significance of changes in the financial performance of the banks three years before and three years after mergers. No significant difference in the financial performance of the local banks between pre and post M&As in the kingdom of Bahrain was observed. No significant difference in the financial performance of the acquirer bank or the target bank was observed except Bahraini Saudi Bank (target bank) which showed significant improvement in the financial performance after the merger with acquirer bank namely Al Salaam Bank. No significant change in the overall CAMEL ratios was observed for all banks involved in the M&As in Bahrain during 2004-15. The study provides an empirical analysis of the M&As before and after the mergers which can serve as a basis for further evaluation of future strategy of the banking sector in the kingdom of Bahrain.

scholarly journals RECENT TIE UP OF SBI WITH ITS ASSOCIATES: A PROBE OF PRE AND POST-MERGER ATTAINMENT THROUGH THE LENS OF CAMELS FRAMEWORK

2020 ◽  
pp. 198-210
Author(s):  
Rajashree Upadhyay ◽  
Dr. Mahesh Kumar Kurmi
Keyword(s):  
Financial Performance ◽  
Banking Sector ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Management Efficiency ◽  
Significant Difference ◽  
Short Run ◽  
The Impact ◽  
Cover Up ◽  
Effective Output

The term ‘merger’ signifies the joining of two or more business concerns into a single one mainly with the purpose of generating much more effective output. But, sometimes these tie up events are done to absorb the weak entity with intention to cover up these sick entity’s loopholes. Merger in banking sector is now a latest trend to take over weak banks and enhance its business capability with capturing a huge portion of competitive market. In simple terms, banks are unified to enjoy the synergy benefits of the merger. State Bank of India which is currently the most popular one public sector bank of India also witnessed such kind of consolidation events primarily with its subsidiaries banks. The almost latest tie up deal of SBI with its five subsidiaries banks & Bharatiya Mahila Bank occurred on 1st April 2017 is the center point of this study around which analysis is rotating with the intention to examine the impact of consolidation on this largest bank’s performance through the lens of CAMELS framework. This article is purely based on secondary data and all the required facts & figures are congregated from ‘CAPITALINE- 2000 Database’. Three years pre tie up phase (i.e., from 2014-15 to 2016-17) & three years post tie up phase (i.e., from 2017-18 to 2019-20) of State Bank India are explored in this study. The findings of the study confirms that State Bank of India has failed to enjoy the benefits of merger as it take over its own associate banks which are already have high non- performing assets. Ratios related to capital adequacy do not point any remarkable improvements in post-merger phase. Similarly, bank has failed to improve its assets quality. Except Business per Employee all the management efficiency ratios have not gained enough mileage. Overall earnings capacity and liquidity of the bank has also deteriorated after merger. As a whole it can be opined that merger has not made any significant difference in financial performance of SBI, at least in short run. KEYWORDS: Merger & Acquisition, CAMELS, Assets Quality, Sensitivity, Banking Sector

scholarly journals An Assessment of Financial Performance and Service Facility Improvement after Merger and Acquisition of Financial Institutions of Nepal

2021 ◽  
Vol 2 (2) ◽  
pp. 16-25
Author(s):  
Ganesh Bajgai ◽  
Radheshyam Pradhan
Keyword(s):  
Service Quality ◽  
Financial Performance ◽  
Financial Institutions ◽  
Financial Stability ◽  
Banking Sector ◽  
Merger And Acquisition ◽  
Public Confidence ◽  
Acquisition Process ◽  
The Impact

Merger and acquisition are one process to integrate the two or more similar types of institutions into one institution. Basically, more banking sectors are gone in merger and acquisition in Nepal. Nepal Rastra Bank has introduced the Merger by law – 2068 BS with the objective of reducing the number of BFIs, enhancing financial stability and promoting public confidence on the banking sector, which encouraged and compelled the banking sectors to proceed the merger and acquisition process for their long-term sustainability. Considering this status, the study was conducted to identify the impact of merger and acquisition on financial performance and service quality of financial institutions of Nepal. The study was conducted covering the category A and B bank which were established after merger and acquisition process. It was a cross-sectional study conducted among the 385 employees of banking sectors. The result shows that the financial performance and service quality of both types of banks (category A and B) was significantly difference in post-merger situation because the p value of t-test was less than .05 significant level.  

scholarly journals Assessing the Impact of Corporate Governance Index on Financial Performance in the Romanian and Italian Banking Systems

2021 ◽  
Vol 13 (10) ◽  
pp. 5535
Author(s):  
Marco Benvenuto ◽  
Roxana Loredana Avram ◽  
Alexandru Avram ◽  
Carmine Viola
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Banking Sector ◽  
Research Question ◽  
Interactive Effect ◽  
Banking System ◽  
Capital Adequacy ◽  
Banking Systems ◽  
Governance Index ◽  
The Impact

Background: Our study aims to verify the impact of corporate governance index on financial performance, namely return on assets (ROA), general liquidity, capital adequacy and size of company expressed as total assets in the banking sector for both a developing and a developed country. In addition, we investigate the interactive effect of corporate governance on a homogenous and a heterogeneous banking system. These two banking systems were chosen in order to assess the impact of corporate governance on two distinct types of banking system: a homogenous one such as the Romanian one and a heterogeneous one such as the Italian one. The two systems are very distinct; the Romanian one is represented by only 34 banks, while the Italian one comprises more than 350 banks. Thus, our research question is how a modification in corporate governance legislation is influencing the two different banking systems. The research implication of our study is whether a modification in legislation, thus in the index of corporate governance, is feasible for two different banking sectors and what the best ways to increase the financial performance of banks are without compromising their resilience. Methods: Using survey data from the Italian and Romanian banking systems over the period 2007–2018, we find that the corporate governance has a significant, positive and long-lasting effect on profitability and capital adequacy in both countries. Results: Taking the size of the company into consideration, the impact of the Index of Corporate Governance (ICG) on a homogenous banking system is positive while the impact on a heterogeneous banking system is negative. Conclusions: Our study provides evidence of the impact of IGC on financial performance and sheds light on the importance of the size of the company. Therefore, one can state that the corporate governance principles applied do not encourage the growth of large banks in heterogeneous banking sectors, thereby suggesting new avenues of research associated with new perspectives.

scholarly journals A Study on Ownership Structure and Financial Performance of Listed Beverage Food and Tobacco Companies in Sri Lanka

2017 ◽  
Vol 7 (2) ◽  
pp. 36
Author(s):  
Saseela Balagobei ◽  
Thirunavukkarasu Velnampy
Keyword(s):  
Sri Lanka ◽  
Financial Performance ◽  
Ownership Structure ◽  
Relevant Literature ◽  
Foreign Ownership ◽  
Study Data ◽  
Secondary Sources ◽  
Correlation And Regression Analysis ◽  
Corporate Governance Mechanisms ◽  
The Impact

The relevant literature suggests that ownership structure is one of the main corporate governance mechanisms influencing the scope of financial performance. The aim of this study is to investigate the relationship between ownership structure and financial performance of listed beverage food and tobacco companies for the period of 2010-2015. This study also examines the impact of ownership structure on financial performance. The sample consists of 10 listed beverage food and tobacco companies in Sri Lanka. In this study, data was collected from secondary sources and hypotheses are examined by using Pearson’s correlation and regression analysis. The results reveal that ownership concentration and foreign ownership structure are positively correlated with financial performance of listed beverage food and tobacco companies while institutional ownership structure isn’t significantly correlated with financial performance. It is also found that there is a significant impact of foreign ownership structure on financial performance. Higher the foreign ownership structure in listed beverage food and tobacco companies, the higher the financial performance which is preferable for the shareholders and it improves the wealth of companies.

scholarly journals IMPACT OF INFORMATION TECHNOLOGY INVESTMENT TO FINANCIAL PERFORMANCE ON BANKING SECTOR

2018 ◽  
Vol 2 (1) ◽  
pp. 41-46
Author(s):  
Hendra Gunawan ◽  
Serlyna Serlyna
Keyword(s):  
Information Technology ◽  
Financial Performance ◽  
Banking Sector ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sample Population ◽  
Manufacturing Companies ◽  
Financial Investment ◽  
Impact Of Technology ◽  
The Impact

This study examines the impact of technology on the performance of financial investment in banking companies listed in Indonesia Stock Exchange to prove its influence on the development of the banking company's financial performance. The data used in this research is secondary data uses financial statements that have been audited. Data analysis technique used is simple regression analysis. Results showed that between investments in information technology affect the company's financial performance. The results of this study illustrate that the company's financial performance would be if the investment in information technology in the company are used effectively and efficiently. This research is important for companies and organizations, in order to better the use or utilization of information technology in the enterprise. The company is only limited to the banking companies listed in Indonesia Stock Exchange, then further research is recommended to add criteria and indicator others that have not been addressed in this study, in addition to subsequent authors can also extend the sample population to another company with a different field such as manufacturing companies.

scholarly journals Impact of Financial Ratios on Stock Price: Evidence from Indian Listed Banks on NSE

2021 ◽  
Vol 11 (4) ◽  
pp. 5132-5144
Author(s):  
Nitish Rane ◽  
Pooja Gupta
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Banking Sector ◽  
Study Data ◽  
Capital Adequacy ◽  
Financial Ratios ◽  
Annual Reports ◽  
Earnings Per Share ◽  
Net Interest Margin ◽  
The Impact

This study aims to examine the impact of financial ratios on the stock prices of companies listed on NIFTY Bank. Nifty Bank is a sub-index of NIFTY 50 and has various listed banks included based on the criteria given by NSE. This study data has been taken from the period 2010-2019 and taken from the company annual reports. The analysis is done using panel data regression and other tests to verify the best model for the dataset. The results obtained from this study show that the capital adequacy ratio and the dividend payout ratio do not impact the stock price. In contrast, earnings per share, net NPA ratio, and basic earnings per share, net profit margin, and net interest margin exhibited a relationship with the stock price. In the Indian context, there is less research available on this topic, and the idea chosen for the study is original. Along with this, the data collected for the study and the code used for analysis is original work. New investors can use the results of this study in the Indian stock market to analyze a stock and take proper investment decisions. Another practical usage of this study is that banking sector companies can improve their ratios to attract new investors.

scholarly journals The impact of risk factors on the financial performance of the commercial banking sector in Barbados

2018 ◽  
Vol 7 (1) ◽  
pp. 76-93 ◽  
Author(s):  
Anthony Wood ◽  
Shanise McConney
Keyword(s):  
Risk Factors ◽  
Credit Risk ◽  
Financial Performance ◽  
Banking Sector ◽  
Negative Impact ◽  
Interest Rate Risk ◽  
Commercial Banking ◽  
Country Risk ◽  
Risk Variable ◽  
The Impact

The objective of this paper is to determine the impact of risk factors on the financial performance of the commercial banking sector in Barbados using quarterly data for the period 2000 to 2015. The empirical results indicate that Capital Risk, Credit Risk, Liquidity Risk, Interest Rate Risk and Operational Risk have statistically significant impacts on financial performance. The only risk variable which does not derive this result is Country Risk. In addition, of those variables which proxy external factors, only GDP Growth has a statistically insignificant influence on financial performance. Credit risk exerted a negative impact on the banks’ financial performance, thus the banks must ensure they adopt appropriate measures to minimise the impact of this risk. Higher levels of capital impacted positively on the banking sector’s profitability. This paper is the first effort employing such an extensive dataset based on Barbados’ commercial banking sector and shows the main factors that influence commercial banks’ financial performance in this developing economy.

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