scholarly journals Revocation of a Banking License as an Instrument for Regulating Merger and Acquisition Transactions

2019 ◽  
Vol 8 (4) ◽  
pp. 8881-8884
Keyword(s):  
Decision Making ◽  
Mergers And Acquisitions ◽  
Banking Sector ◽  
Merger And Acquisition ◽  
Additional Information ◽  
Earnings Per Share ◽  
State Participation ◽  
License Revocation ◽  
The Cost ◽  
The Impact

The article analyzes the dynamics of the indicators of the merger and acquisition market in the banking sector, as well as the indicator of revocation of banking licenses. The analysis has shown the outperformance of bank decrease in relation to bank acquisition over the same period, which indicates a significant impact of license revocation on the merger and acquisition market. The article assesses the impact of the merger and acquisition market on the structure of proportional regulation in favor of banks with universal licenses. An increase in the concentration of capital is observed, especially in banks with state participation. The article investigates the methods of calculating the cost of mergers and acquisitions. The authors propose to add two more factors to the already known factors of change in earnings per share due to mergers and acquisitions: the type of license revoked by the regulator as a result of the rehabilitation and goodwill, which should be considered in the merger cost using additional coefficients. This will allow the merger cost to be more accurately determined and provide the investor with additional information for decision-making.

scholarly journals The Role and Impact of Merger & Acquisition of Banking Sector in Pakistan

2019 ◽  
Vol 3 (3) ◽  
pp. 113-121
Author(s):  
A. Kishwar ◽  
A. Ullah
Keyword(s):  
Mergers And Acquisitions ◽  
Interest Rates ◽  
Banking Sector ◽  
Merger And Acquisition ◽  
Small Sample ◽  
Theoretical Research ◽  
Before And After ◽  
Banking Institutions ◽  
Acquisition Processes ◽  
The Impact

Authors: Kishwar Ali, School of Finance, Zhongnan University of Economics & Law, Wuhan, China Atta Ullah, School of management, Huazhong University of Science and Technology, Wuhan China Pages: 113-121 DOI: http://doi.org/10.21272/fmir.3(3).113-121.2019 Download: Views: Downloads: 40 54 Abstract The paper summarizes the arguments and counterarguments in the scientific discussion on determining the effects of mergers and acquisitions for banking institutions. The purpose of this article is to conduct an empirical study to identify the nature of the impact of mergers and acquisitions on Pakistan’s financial sector performance. The research in the article is carried out in the following logical sequence: a thorough literature review on the analysis of key aspects of mergers and acquisitions and their impact on the financial and economic performance of banks before and after their practical implementation; the historical basis of the experience of mergers and acquisitions caused by various economic factors, such as: GDP growth, interest rates on loans, monetary policy; financial analysis of bank profitability, solvency and liquidity indicators before and after the merger and acquisition was conducted. Five commercial banks of Pakistan that were involved in the merger and acquisition processes were selected as the subject of study. The study period is presented before and after the merger and includes two years before the acquisition report and two years after the acquisition announcement by analysis of financial ratios of liquidity, solvency and profitability. The results of empirical and theoretical research have shown that there is a positive relationship between merger and acquisition processes and liquidity ratios of banking institutions; and – the negative impact of such processes on banks’ profitability and solvency in the short term. The author states that the main limitation of the study is the unavailability of financial data until 2006 and the use of a small sample size and a low likelihood of data collection technique, which is limited by a certain type of people and lack of generalization. Keywords: merger, acquisition, bank, solvency risk, liquidity, profitability.

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 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.

scholarly journals Determinants of Merger and Acquisition: An Indian Pharmaceutical Industry Perspective

2019 ◽  
Vol 8 (2S11) ◽  
pp. 3081-3088
Keyword(s):  
Pharmaceutical Industry ◽  
Mergers And Acquisitions ◽  
Competitive Advantage ◽  
Secondary Data ◽  
Merger And Acquisition ◽  
Company Performance ◽  
Compulsory Licensing ◽  
The Impact ◽  
Negative Factors ◽  
Indian Pharmaceutical Industry

Mergers and acquisitions (M&A) have gained prominence across the globe as a way of gaining competitive advantage and boosting the profit of the companies. The Indian pharmaceutical industry has readily embraced M&As in the recent times and has witnessed a number of profitable deals materialize, while some indeed failed. The success of M&As is contingent upon a variety of factors and eventually has a bearing on how the acquiring and target companies perform. This study intended to identify the various factors that either lead to or impede M&As and to measure their impact on company performance. The factors that motivate and discourage M&As were identified and the importance of factors such as deal size and compulsory licensing requirement in M&A success was assessed and the impact of the all these factors on the performance of the companies was assessed using both primary and secondary data. The encouraging and discouraging aspects of M&A were found to impact company performance significantly, so did the deal size and compulsory licensing requirement. The findings implied that the success of M&As depends on a variety of positive and negative factors and the participating companies need to balance these factors judiciously in order to obtain realistic profits from M&As

scholarly journals THE IMPACT OF M&A TRANSACTIONS ON THE GROWTH OF THE BANKS’ MARKET VALUE

2021 ◽  
Vol 5 (40) ◽  
pp. 45-54
Author(s):  
L. Prymostka ◽  
N. Pantielieieva ◽  
I. Krasnova ◽  
V. Lavreniuk ◽  
O. Lytvynenko
Keyword(s):  
Economic Development ◽  
Mergers And Acquisitions ◽  
Banking Sector ◽  
Jel Classification ◽  
Economic Indicators ◽  
Level Of Economic Development ◽  
Banking Business ◽  
Economic Trends ◽  
The Impact ◽  
The Relationship

Abstract. The globalization of markets, the need to comply with modern economic trends and introduce new technological solutions to increase the profitability of the banking business have significantly intensified the processes of mergers and acquisitions in the banking sector. M&A processes are long and complex, their results are difficult to forecast in lack of actual detailed research. The diversity of the results of the available research requires updating the data based on larger volumes of transactions and larger time intervals. The purpose of the article is to substantiate two hypotheses: first, the impact of M&A agreements especially on the increase in the value of banks; and impact of factors that show economic development level on the value of banks. The object of the study is the relationship between the value of commercial banks in domestic and foreign financial markets, M&A agreements, as well as economic indicators published by the World Bank and measuring the level of economic development of countries. The article uses statistical modeling method. The constructed model of linear regression allows to state that the fact of influence of M&A on growth of cost of consolidated banks is fair for 54.8% of cases. The study shows that the M&A processes have the greatest impact on the value of banks in the interval of 3—5 years after the conclusion of the agreement. Analysis of the relationship between economic indicators and the growth of bank value shows that the greatest impact on the value of banks has percent of the growth of GDP and GDP per capita, but the low value of the determinant at 22.9% indicates a low dependence of bank value on the level of economic indicators in general. It was found that external factors do not directly affect the growth in the value of banks in the process of M&A transactions. The question of expanding the system of factors that will influence the M&A processes and, as a consequence, the value of the banks, will be the subject of further research. Keywords: globalization of markets, mergers and acquisitions of banks, consolidation, M&A dynamic, market capitalization, bank value. JEL Classification Е44, Е47, G14 Formulas: 2; fig.: 4; tabl.: 4; bibl.: 14.

scholarly journals Impact of 123I-MIBG Scintigraphy on Clinical Decision-Making in Pheochromocytoma and Paraganglioma

2019 ◽  
Vol 104 (9) ◽  
pp. 3812-3820 ◽  
Author(s):  
Dipti Rao ◽  
Anouk van Berkel ◽  
Ianthe Piscaer ◽  
William F Young ◽  
Lucinda Gruber ◽  
...  
Keyword(s):  
Decision Making ◽  
Clinical Decision Making ◽  
Clinical Decision ◽  
Diagnostic Value ◽  
Mibg Scintigraphy ◽  
Cross Sectional ◽  
First Choice ◽  
Cross Sectional Imaging ◽  
The Cost ◽  
The Impact

Abstract Context Cross-sectional imaging with CT or MRI is regarded as a first-choice modality for tumor localization in patients with pheochromocytoma and paraganglioma (PPGL). 123I-labeled metaiodobenzylguanidine (123I-MIBG) is widely used for functional imaging but the added diagnostic value is controversial. Objective To establish the virtual impact of adding 123I-MIBG scintigraphy to CT or MRI on diagnosis and treatment of PPGL. Design International multicenter retrospective study. Intervention None. Patients Two hundred thirty-six unilateral adrenal, 18 bilateral adrenal, 48 unifocal extra-adrenal, 12 multifocal, and 26 metastatic PPGL. Main Outcome Measures Patients underwent both anatomical imaging (CT and/or MRI) and 123I-MIBG scintigraphy. Local imaging reports were analyzed centrally by two independent observers who were blinded to the diagnosis. Imaging-based diagnoses determined by CT/MRI only, 123I-MIBG only, and CT/MRI combined with 123I-MIBG scintigraphy were compared with the correct diagnoses. Results The rates of correct imaging-based diagnoses determined by CT/MRI only versus CT/MRI plus 123I-MIBG scintigraphy were similar: 89.4 versus 88.8%, respectively (P = 0.50). Adding 123I-MIBG scintigraphy to CT/MRI resulted in a correct change in the imaging-based diagnosis and ensuing virtual treatment in four cases (1.2%: two metastatic instead of nonmetastatic, one multifocal instead of single, one unilateral instead of bilateral adrenal) at the cost of an incorrect change in seven cases (2.1%: four metastatic instead of nonmetastatic, two multifocal instead of unifocal and one bilateral instead of unilateral adrenal). Conclusions For the initial localization of PPGL, the addition of 123I-MIBG scintigraphy to CT/MRI rarely improves the diagnostic accuracy at the cost of incorrect interpretation in others, even when 123I-MIBG scintigraphy is restricted to patients who are at risk for metastatic disease. In this setting, the impact of 123I-MIBG scintigraphy on clinical decision-making appears very limited.

scholarly journals Do mergers and acquisitions affect information asymmetry in the banking sector?

2020 ◽  
Vol 46 (12) ◽  
pp. 1521-1547
Author(s):  
John S. Howe ◽  
Thibaut G. Morillon
Keyword(s):  
Mergers And Acquisitions ◽  
Information Asymmetry ◽  
Design Methodology ◽  
Banking Sector ◽  
Policy Makers ◽  
Content Type ◽  
Deal Completion ◽  
Asymmetry Measures ◽  
The Impact

PurposeThis paper aims to investigate the consequences of mergers and acquisitions (M&As) on information asymmetry in the banking sector. Specifically, the authors look at whether specific firm or deal characteristic influence information asymmetry levels between insiders and investors, as well as the impact of recent regulation such as the Dodd–Frank Act.Design/methodology/approachThe authors decompose the M&A process into three periods (pre-announcement, negotiation and post-completion period) and document changes in the information asymmetry levels between insiders and investors through the M&A process. The authors capture changes in information asymmetry using six different spread-based information asymmetry measures.FindingsThe authors find evidence that information asymmetry increases following M&A announcement and decreases following deal completion. These findings are more pronounced for acquisitions involving a private target, all-cash deals and for mergers, as opposed to acquisition of assets. We find that overall, successful mergers improve the quality of the information environment, while failed deals degrade it. Additionally, the enactment of Dodd–Frank reduced the magnitude of the changes in information asymmetry during the M&A process. The results are important to regulators, policy makers and investors.Originality/valueTo authors’ knowledge, this is the first study that looks at the effect of bank M&As on information asymmetry as well as the effect of regulations on information asymmetry.

An Investigation Into the Decision Analysis of Design Process Decisions

2010 ◽  
Vol 132 (12) ◽  
Author(s):  
Stephanie C. Thompson ◽  
Christiaan J. J. Paredis
Keyword(s):  
Decision Analysis ◽  
Design Process ◽  
Material Selection ◽  
Information Economics ◽  
Problem Formulation ◽  
Additional Information ◽  
Use Of Resources ◽  
Primary Driver ◽  
The Cost ◽  
The Impact

Although recent work in decision-based design (DBD) recognizes the need for an enterprise perspective in which the expected profit is the primary driver of utility, for the overwhelming majority of contributions in the DBD literature, the emphasis in the problem formulation is exclusively on the design artifact. This formulation of DBD problems is too narrow in scope, because the use of resources during the design and development phase is overlooked, making it impossible to consider the tradeoffs between the quality of the design artifact and the cost of the design process. We aim to establish a new DBD perspective that more accurately represents the tradeoffs under consideration in an enterprise context by studying the design actions with decision analysis. As a first step toward establishing this new perspective, a simple example problem of material selection for a pressure vessel is introduced and analyzed in this paper. Although several simplifying assumptions are made, the intent of this work is to qualitatively explore the impact of relaxing some of the assumptions implicitly made in previous work in DBD, specifically the assumption of ignoring the costs of the design phase and the assumption that the value of a particular analysis is independent of the ability to gain additional information from subsequent analyses. This work confirms that an analysis is worth performing only when the cost is low, the quality is high, and the overlap in the predicted utility of the two concepts is significant. These insights are also compared with the related work in information economics. We show that the decision analysis of design process decisions provides a more comprehensive model of the problem when multiple information sources can sequentially be used.

scholarly journals ERP implementation in banks: success factors & impact on financial performance

2017 ◽  
Vol 12 (4) ◽  
pp. 17-30
Author(s):  
Munther Al-Nimer ◽  
Ahmed Omush ◽  
Adel Almasarwah
Keyword(s):  
Financial Performance ◽  
Success Factors ◽  
Banking Sector ◽  
Sample Type ◽  
Erp Systems ◽  
Erp System ◽  
It Department ◽  
Training Courses ◽  
The Cost ◽  
The Impact

The study aims to measure the extent of implementing ERP systems in the banking sector in Jordan, and identify the main factors that influence the implementation decision, in addition to measure the impact of the post-implementation of the ERP system on the financial performance. The study utilized a content analysis as a research instrument. The study of population consisted of all the banks in Jordan, where the study applied ‘Purposive Sample’ type. Therefore, the study included 11 banks from 2011 to 2016.The study indicated that the implementation year of the ERP system started in most of the Jordanian banks in 2013, and the rates vary from bank to bank according to their importance and the level of awareness. Training courses are considered the main variable that these banks face in the process of implementation. In addition, awareness of the advantages, the cost, and supporting the infrastructure are the core factors needed to influence the implementation decision.There is no impact when implementing an ERP system on the financial performance of the Jordanian banks in regard to the ROI and the DPS; on the other hand, there is an impact of the ERP system on the overall performance of the banks.The study recommends to disseminate knowledge on the advantages of implementing of ERP system in Jordanian banks and to develop the IT department efficiency. Moreover, it will be worthwhile to examine the effect of ERP systems by utilizing financial and non-financial measurements.

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