The Efficiency Effects of Mergers and Acquisitions in Malaysian and US Banking Institutions

Masters
Term Paper
Finance & Accounting
Pages 5 (1255 words)
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The Efficiency Effects of Mergers and Acquisitions in Malaysian and US Banking Institutions Table of Contents 1.Introduction 3 2.Overview of Malaysian and US Banking Sector 4 3.Mergers and Acquisitions in Malaysian and US Banking Institutions 7 4.Effect of Mergers and Acquisitions in Banking Institution along with the Financial Market of Malaysia and US 8 5.Conclusion 10 Reference 11 1…

Introduction

The effect of globalisation on trade and business is the most prominent aspects and this has created the impotence of deregulation for encouraging economic growth. These market deregulations have intensified the market competition and the existing players are trying to gain upper hand position in the market. In this regard, Hope and Maeleng have mentioned free trades as “competition–enhancing devise” (Hope and Maeleng, p.61). In such competitive business environment, every organisation is trying to be larger in terms of value, market size, consumer base etc. However, achieving rapid growth is tedious and long term process that may cause in not catering the available opportunities before rivals and this process of growth is known as organic growth. On the other hand, mergers & acquisitions (M&A) leads to achieve a rapid organisational growth. Today, M&A has become very popular strategies for the business and market expansion in domestic and in international market. However, M&A is riskier strategy as it influences the engaged companies as well as the entire market (Hagelm p.155-157). This paper will present a discussion on the effect of M&A on banking institutions and financial markets of Malaysia. 2. ...
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