On the date when an M&A are, announced stock prices normally jump abnormally from the acquiring bank to the target company (Banerjee & Cooperman, 2000). In addition, M&A’s which resulted into the creation of diversification of the business in which the banks operate resulted into very high returns. However, other M&A types resulted neither into creation nor into destruction of the shareholders’ wealth or share values. This is majorly due to the sole reason that stock prices alone cannot be used to depict the value that is created by a merger and acquisition. Therefore, Accounting performance technique and stock prices analysis will be employed to help in the understanding the likelihood of stability of value creation (Banerjee & Cooperman, 2000). There are various reasons for merger and acquisitions with value creation being the major or primary reason. Other cases present other banks to merge or acquire with the others if they consider the others as having potential for potential gains in the future. Some instances, partners to an M&A found themselves in the situation after they were salvaged from financial crisis hence M&A was a solution to their predicaments resulting into such companies being for good bargains once their financial problems are taken care of by the M&A arrangements. Considering that the banking industry is highly regulated, it is worthwhile to note that smaller banks could engage in mergers with larger banks to guarantee them their profitability. Those banks that intend to engage in acquisitions mostly consider the banks that they intend to acquire to be of greater value addition to them at some speculated future time (Amihud & Travlos, 1990). Therefore, there are a variety of financially motivating reasons why one bank may choose to engage into an M&A agreement with the other bank whether small or big. From research, it is quite evident that large scale M&A’s in the banking industry in the past have helped the banks out of stiff competition hence securing even a greater market share locally and abroad. Hence, apart from the fundamental reasons for M&A, one can rest assured that at least be sure that either of the parties will gain from such arrangements. In most of the cases, mutual benefits are realized with the new formed firm becoming more profitable. As typical reasons of starting banks for long-term profitability, some findings have it that some were created to be sold out for cash revenue to the owners. M&A to create larger banks in both the EU and the US have given room to drastic change in structure of the banking industry in the two regions (Amihud & Travlos, 1990). On whether these changes are good or bad is a large question to be answered on the long run through the consideration of the influences on the main players in the arrangements. This because shareholder value is only a single aspect of the value creation expected through the arrangements under M&A. in the methodology therefore, the study focuses through empirical analysis that mergers and acquisitions creates the value for shareholders in both the target and the acquirers of the banks that are involved. The data also conducts an examination of the reactions of shareholders when share prices are manipulated in relation to gains or losses created due to the instability (Banerjee & Cooperman, 2000). The data set to be used is that from two sources: that of Thomson One Banker M&A for data on the operations of M&A. the other source will be that of the non-involved banks as a control for
Date DATA AND METHODOLOGY Data sample The research as defined examines M&A of the banking industry in both the US and EU banking industry that has lead to the formation of mega banks in the mentioned regions (Amihud & Travlos, 1990)…
In this part of the dissertation, summary of the past researches in relation to the topic of the research are collected. Thus literature review is secondary source of gathering information hence it does not contribute any original thought in the context of the research.
Through the strict implementation of e-recruitment, each bank can speed up and improve the overall quality of the banks’ recruitment services. Banks like Lloyds TSB in UK and ICICI in India spent a lot of money on its e-recruitment platform. Among the common reasons why these two banks invested on e-recruitment is to get hold of the most highly competitive individuals to join the team, speed up, and further improve its existing recruitment services.
This is the period in which US had different types of economic developments. In September 2008, the situation was at its peak since this is the period when Lehman Brothers (US bank investment) collapsed (Shaffer, 2000). This crisis further advanced into the financial sector.
Table of Contents
CHAPTER ONE 4
1. Introduction 4
1.1 Background of the Study 5
1.2 Problem Statement 6
1.3 Aim and Objective of the Study 6
1.4 Significance of the Study 7
1.5 Scope and Limitation of the Study 8
1.6 Definition of Terms 9
CHAPTER TWO 10
The research study analyses the evolution and how the industry has improved and changed because of IT. Changes in IT have influenced the banking industry of India as it has offered convenience to make transactions. Consumers have also welcomed the changes that have occurred over the period of time as the volume of transaction have increased over the years
Although all firms face some market risk, it is possible to mitigate other risks including social and reputation risks by emphasising implementation of CSR initiatives. In the present day and age, global corporations are the subject of scrutiny for their policies and practices across the world.
According to the paper, the UAE government framed polices was effective to prevent most of possible negative effects on the economy of the country. Eventually the nation emerged out as one of sturdiest of all GCC nations. Despite UAE’s fluctuating current account balance, the government is observed to tackle economic issues efficiently.
According to Kalakota & Whinston (cited in Aladwani, 2001) last few years have witnessed profound technological changes among which is the advent of electronic commerce (IEC) or the exchange of products and payment via telecommunication systems. Internet technology holds the potential to fundamentally change banks and the banking industry allowing the individual banks to easily offer innovative products and access new customers (Sullivan, 2000).
Background of the Study Financial institutions all over the world are experiencing various problems as regards attracting and retaining high quality technical talent. For instance, in India, the banking in the public sector experiences this particular problem due to the implemented salary structures therein (Shroff 2007).
bal banking industry, traditional banks faced the problem of handling a large volume of customers and simultaneously to reduce per transaction cost in order to be profitable. Also, with availability of large volume of financial instruments, banks had to introduce various customer-centric products in the market, which increased the number of transactions, and old-model branch banking simply would not be cost effective.
35 pages (8750 words)Dissertation
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