Impact of Merger Announcements on Shareholders’ Investments in India: Empirical Analysis in Selected Sectors

2019 ◽  
Vol 8 (2) ◽  
pp. 96-103
Author(s):  
Krishnaveni . ◽  
P. Sathwik Teja
Keyword(s):  
Mergers And Acquisitions ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Abnormal Returns ◽  
Horizontal Mergers ◽  
Gas Industry ◽  
Target Company ◽  
Stock Market Valuation ◽  
The Impact

This study makes an attempt to estimate the impact of horizontal mergers and acquisitions that have taken place in eight selected banks/companies of five Indian private sectors. An event study methodology has been used to explore the effects on the investments of shareholders of the selected company mergers that have taken place during the period 2010 to 2018. This study of stock market valuation and estimation of effective, abnormal and cumulative average abnormal returns in the context of Indian horizontal mergers has shown interesting findings. The results indicate that the mergers and acquisitions in the banking sector have shown a positive impact on the investors of both Kotak Mahindra bank, the bidder bank and ING Vysya bank, the target bank. Further, in the case of pharmaceutical sector the M&A has shown a positive impact on the investors of both bidder company (Torrent Pharma) and the target company (Unichem Laboratories Ltd). In case of first merger considered under the steel sector and in the Oil &Gas industry (only one merger), the negative impact is found both on the investors of bidder and target companies.In the rest of the mergers considered for this study, mixed reaction of both positive and negative returns has been found. The findings of this study provide input to both the acquiring and the target company shareholders. The acquiring company tends to overbid for acquiring the target company, therefore this process mostly benefits the target company’s shareholders at the cost of acquiring company shareholders. Hence, the management of the acquiring company should be vigilant.

Assessing the introduction of anti-money laundering regulations on bank stock valuation

2019 ◽  
Vol 22 (1) ◽  
pp. 76-88 ◽  
Author(s):  
Henry Balani
Keyword(s):  
Money Laundering ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Statistical Significance ◽  
Abnormal Returns ◽  
Content Type ◽  
The Usa ◽  
Bank Stock ◽  
The Impact

Purpose This paper aims to analyze the impact of the introduction of anti-money laundering (AML) regulations on bank stock valuations in the USA. Regulations can have a negative impact on financial returns as a result of increased operational costs, potentially driving down stock valuations and loss of profitability. However, regulations can also have a positive impact on valuations because of greater oversight and increased investor confidence. Findings are useful for assessing the market impact of future regulations. Design/methodology/approach Event studies and cross-sectional regression analysis are used to determine the impact on bank stock valuations together with specific characteristics of bank size and geographic headquarter location of the bank for identified AML regulations. Hypothesis related to the impact of the introduction of AML regulations are empirically tested based on the statistical significance of cumulative abnormal returns of markets. Findings AML regulations introduced in 1998 had a positive impact on bank stock valuations, while the USA PATRIOT Act legislation of 2001 had a negative impact. These findings suggest that recent AML regulation is a cost compliance burden for banks, where the costs of operations outweigh the benefits of improved processes. Larger banks see a more negative impact on their bank stock valuations compared to smaller banks, suggesting the market perceives greater cost and less profit for larger banks. Results also show that the location of bank’s headquarters does not significantly impact bank stock valuations. Originality/value This paper specifically focuses on the impact of AML regulations on the US banking sector, providing investors, academics and regulators additional insight on the market dynamics of regulations. Identifying whether the introduction of regulations has a significant impact on a bank’s performance will provide both banks and regulators clarity as to the net benefits associated with the current and future AML legislation.

scholarly journals Does Growing Economy And Better Governance Impede Banking Efficiency? A DEA Analysis

2015 ◽  
Vol 31 (6) ◽  
pp. 2213
Author(s):  
Ramiz Ur Rehman ◽  
Junrui Zhang ◽  
Rizwan Ali ◽  
Abdul Qadeer
Keyword(s):  
Corporate Governance ◽  
Interest Rates ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Foreign Banks ◽  
Significant Difference ◽  
Governance Practices ◽  
Growing Economy ◽  
The Impact

The paper estimates the efficiencies of Pakistani banking sector from 1998-2009. The analysis is further extended and regressed estimated banking efficiencies by using Data Envelopment Analysis (DEA), with macro-economic indicators and corporate governance variables of the banking sector. The purpose of this analysis is to determine the impact of overall economic conditions of a country and corporate governance practices on banking efficiencies. The results suggest that the corporate governance practices, like, board size, board independence have positive impact on overall banking sector efficiencies of Pakistan. Also, the GPD growth and interest rates have positive and negative impact on banking efficiencies respectively. The study has not found any significant difference in banking efficiencies of state-owned, private and foreign banks of Pakistan. 

scholarly journals Wskaźniki koncentracji jako miary konkurencji w sektorze bankowym

2015 ◽  
Vol 2 (3) ◽  
pp. 25-38
Author(s):  
Małgorzata Pawłowska
Keyword(s):  
Financial Crisis ◽  
Mergers And Acquisitions ◽  
Banking Sector ◽  
Positive Impact ◽  
Lerner Index ◽  
The Impact

The aim of this paper is to examine the impact of changes in concentrationcaused by, among others, mergers and acquisitions on the level of competitionin the Polish banking sector in the years 1997–2012. The Lerner index was usedto measure competition in the Polish banking sector while CR5 and HHI indiceswere used as a measure of concentration. The article also addresses the impactof competition on risk in the Polish banking sector. The results of quantitativeanalysis showed that in the period before the financial crisis (1997-2007) the levelof concentration had a positive impact on the level of competition, i.e. the increasein the concentration was accompanied by increase in the level of competition.

IMPACT OF FREEZING OF FCAS: THE CASE OF PAKISTAN

2012 ◽  
Vol 01 (06) ◽  
pp. 01-06
Author(s):  
Hafiz Abdur Rashid ◽  
Ali Raza ◽  
Syed Usman Izhar ◽  
Muhammad Waqas Baig
Keyword(s):  
Foreign Exchange ◽  
Foreign Investment ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Foreign Debt ◽  
Foreign Exchange Rates ◽  
International Banking ◽  
Foreign Exchange Reserves ◽  
The Impact

Foreign investment and foreign exchange reserves have ample importance for developing countries. So, there is a needed to encourage the foreign and domestic investors whose confidence was suffer by the unexpected decision of freezing of FCAs. The purpose of this study was to identify the areas that were affected after the decision of freezing of FCAs. Moreover, the impact of freezing decision on economy of Pakistan also indicated. More sophisticated impact on banking sector, balance of payment, foreign exchange reserves, foreign debt, and foreign investment. Study found the negative impact of freezing decision of FCAs on foreign banking and positive impact on domestic banking but Pakistan banking sector was disconnected from the international banking; insatiability in balance of payment was increased; the foreign investment and exports was reduced. Resultantly, foreign exchange reserves were reduced and foreign exchange rates was increased. Therefore, it is suggested to increase the confidence of foreign investors in order to increase the foreign investment and foreign exchange reserves. Discussion of conclusions and recommendations were also provided.

The impact of a country’s level of development on the nexus between bank lending structure and economic growth

2021 ◽  
pp. 51-70
Author(s):  
I. N. Gurov ◽  
E. Y. Kulikova
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Bank Lending ◽  
Low Income Countries ◽  
Gdp Per Capita ◽  
Per Capita ◽  
The Impact

The purpose of this paper is to determine how the impact of the bank lending structure on economic growth differs depending on the level of a country’s development. The article provides suggestions on how much one can rely on the leading growth of corporate and consumer bank lending in order to promote economic growth. The study is based on the panel data for 211 countries for the period 1990—2019 using methods of qualitative and quantitative analysis. The authors have identified three groups of the countries where the impact of the bank lending structure on economic growth is different. In the least developed and low-income countries, the leading growth of both consumer and corporate lending has a positive impact on economic growth. As GDP per capita reaches 4,700—7,000 constant 2010 U.S. dollars, the outstripping growth of consumer lending begins to negatively affect economic growth, while corporate lending continues to have a positive impact. As GDP per capita continues to increase, corporate lending also begins to negatively affect economic growth. The GDP per capita threshold level, after which the negative impact of corporate lending begins, ranges from 6,000 to 42,000 constant 2010 U.S. dollars, some estimates allow us to specify these limits from 13,000 to 22,000 constant 2010 U.S. dollars. Such broad boundaries are determined by the fact that the role of the banking sector in investments financing may differ because of the financial sector model and the national economy structure. However, our results show that in the most developed and high-income countries, faster growth in corporate lending will not contribute to economic growth. The study also finds that the share of mortgage loans in GDP has a positive but insignificant effect on economic growth in all groups of the countries.

043 Sleep Restriction Affects Memory in Healthy Adults: Preliminary Findings

SLEEP ◽  
2021 ◽  
Vol 44 (Supplement_2) ◽  
pp. A18-A19
Author(s):  
Molly Zimmerman ◽  
Christiane Hale ◽  
Adam Brickman ◽  
Lok-Kin Yeung ◽  
Justin Cochran ◽  
...  
Keyword(s):  
Working Memory ◽  
Negative Impact ◽  
Positive Impact ◽  
Healthy Adults ◽  
Task Demands ◽  
Sleep Restriction ◽  
Neuropsychological Function ◽  
Wake Time ◽  
Sleep Condition ◽  
The Impact

Abstract Introduction Sleep loss has a range of detrimental effects on cognitive ability. However, few studies have examined the impact of sleep restriction on neuropsychological function using an experimental design. The goal of this study was to examine the extent to which maintained insufficient sleep affects cognition in healthy adults compared to habitual adequate sleep. Methods This study used a randomized, crossover, outpatient sleep restriction design. Adults who regularly slept at least 7 h/night, verified by 2 weeks of screening with actigraphy, completed 2 phases of 6 weeks each: habitual sleep (>7 h of sleep/night) or sleep restriction (habitual sleep minus 1.5 h) separated by a 6-week washout period. During the sleep restriction phase, participants were asked to delay their bedtime by 1.5 hours/night while maintaining their habitual wake time. Neuropsychological function was evaluated with the NIH Toolbox Cognition Battery at baseline (week 0) and endpoint (week 6) of each intervention phase. The NIH Toolbox evaluates a range of cognitive abilities, including attention, executive functioning, and working memory. General linear models with post hoc paired t-tests were used to assess demographically-adjusted test scores prior to and following each sleep condition. Results At the time of analyses, 16 participants were enrolled (age 34.5□14.5 years, 9 women), 10 of whom had completed study procedures. An interaction between sleep condition and testing session revealed that individuals performed worse on List Sorting, a working memory test, after sleep restriction but improved slightly after habitual sleep (p<0.001). While not statistically reliable, the pattern of test results was similar on the other tests of processing speed, executive function, and attention. Conclusion In these preliminary results from this randomized experimental study, we demonstrated that sleep restriction has a negative impact while stable habitual adequate sleep has a positive impact on working memory, or the ability to temporarily hold information in mind while executing task demands. This finding contributes to our understanding of the complex interplay between different aspects of sleep quality (i.e., both sleep restriction as well as the maintenance of stable sleep patterns) on cognition and underscores the importance of routine sleep screening as part of medical evaluations. Support (if any):

scholarly journals Exploring the Relationship between Communication and Success of Construction Projects: The Mediating Role of Conflict

2021 ◽  
Vol 13 (8) ◽  
pp. 4513
Author(s):  
Summaira Malik ◽  
Muhammad Taqi ◽  
José Moleiro Martins ◽  
Mário Nuno Mata ◽  
João Manuel Pereira ◽  
...  
Keyword(s):  
Project Success ◽  
Negative Impact ◽  
Positive Impact ◽  
Construction Project ◽  
Project Team ◽  
Relationship Conflict ◽  
Team Members ◽  
Mediating Role ◽  
The Impact

The success of a construction project is a widely discussed topic, even today, and there exists a difference of opinion. The impact of communication and conflict on project success is an important, but least addressed, issue in literature, especially in the case of underdeveloped countries. Miscommunication and conflict not only hinder the success of a project but also may lead to conflicts. The focus of this paper was to examine the impact of communication on project success with the mediating role of conflict. By using SPSS, demographics, descriptive statistics and correlation were determined. Smart PLS version 3.0 was used for confirmatory factor analysis (CFA), internal accuracy and validity estimates, hypothesis checking and mediation testing. The results showed that formal communication has a negative impact on the success of a construction project, resulting in conflicts among project team members, whereas informal communication and communication willingness have a positive impact on project success because people tend to know each other, and trust is developed. Task, process and relationship conflicts were used as mediating variables. It was found that task conflict effects the relations positively because project team members suggest different ways to do a certain task, and, hence, project success is achieved. On the contrary, process conflict and relationship conflict have a negative impact on communication and project success. Both of these conflicts lead to miscommunication, and project success is compromised. Hence, it is the responsibility of the project manager to enhance communication among project team members and to reduce the detrimental effects of process and relationship conflict on project success.

scholarly journals Environmental Regulation, Environmental Awareness and Environmental Governance Satisfaction

2021 ◽  
Vol 13 (7) ◽  
pp. 3960
Author(s):  
Meng-Meng Geng ◽  
Ling-Yun He
Keyword(s):  
Environmental Regulation ◽  
Environmental Governance ◽  
Negative Impact ◽  
Positive Impact ◽  
Subjective Evaluation ◽  
Environmental Awareness ◽  
General Social Survey ◽  
Probit Model ◽  
The People ◽  
The Impact

It is a problem worth thinking about whether the government’s environmental regulation policies can meet the residents’ requirements for environmental quality, and benefit the people. The study of the public’s subjective evaluation can more intuitively judge whether the government’s environmental regulation has realized “ecological benefits for the people”. Based on the data of the Chinese General Social Survey (CGSS) in 2013, this paper studied the impact of environmental regulation and environmental awareness on environmental governance satisfaction by an ordered probit model. The study found that environmental regulation has a significant positive impact on environmental governance satisfaction, while environmental awareness has a significant negative impact on environmental governance satisfaction. We also found that when public environmental awareness is taken into account, the positive relationship between environmental regulation and environmental governance satisfaction is affected. The robustness test proved this conclusion.

The Impact of the Business Environment on the Formalization of Informal Firms. The Case of Kosovo

Südosteuropa ◽  
2020 ◽  
Vol 68 (4) ◽  
pp. 505-529
Author(s):  
Kujtim Zylfijaj ◽  
Dimitar Nikoloski ◽  
Nadine Tournois
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Business Environment ◽  
Positive Influence ◽  
Policy Implications ◽  
Tax Reforms ◽  
Firm Level ◽  
Characteristics Analysis ◽  
Significant Negative Impact ◽  
The Impact

AbstractThe research presented here investigates the impact of the business environment on the formalization of informal firms, using firm-level data for 243 informal firms in Kosovo. The findings indicate that business-environment variables such as limited access to financing, the cost of financing, the unavailability of subsidies, tax rates, and corruption have a significant negative impact on the formalization of informal firms. In addition, firm-level characteristics analysis suggests that the age of the firm also exercises a significant negative impact, whereas sales volume exerts a significant positive impact on the formalization of informal firms. These findings have important policy implications and suggest that the abolition of barriers preventing access to financing, as well as tax reforms and a consistent struggle against corruption may have a positive influence on the formalization of informal firms. On the other hand, firm owners should consider formalization to be a means to help them have greater opportunities for survival and growth.

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