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Are premiums paid for takeovers overvalued before and after the financial crisis in Greek banking industry? - Dissertation Example
Author : linwood45
Finance & Accounting
Pages 23 (5773 words)
Are premiums paid for takeovers overvalued before and after the financial crisis in Greek banking industry? Literature Review Literature review is vital part of the dissertation as it provides crucial views of the prominent researchers and scholars in the respective area…
However, it is important part of the dissertation because it makes significant contribution in backing the researcher’s point of view while providing current knowledge including substantive findings in terms of theoretical and methodological contribution. It reviews the books, journal articles and magazines to give new interpretations to old sources. In the article written by Li and Xu (2002), it is stated that higher- risk assets gives higher returns in comparison to low risk assets like treasury bills (see table1 below). It forms a basis in decision of asset allocation and making an estimation of interest rates in financial markets (Haitao Li and Yuewu Xu, 2002). During the process of bidding demand for firm’s products and its value influence the financial premium of the firm. It is so because there is direct correlation between net expected value and performance of the firm as it yields higher returns. This implies that the higher the value of the firm the higher premiums. Barberis, et al, (2001) held the view that higher volatility is recorded in the stock prices of a company when performance if its assets is not up to the standard. The entire banking industry came under pressure due to credit turmoil and subsequent deterioration of global market which in turn prompted intervention of the central banks particularly the IMF and the World Bank. ...