Literature review on mergers and acquisitions in banking. A Literature Review of Mergers and Acquisitions 2019-01-12

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Mergers and Acquisitions in Banking Sector: Literature Review

literature review on mergers and acquisitions in banking

As far as the human resources management issue is concerned, it has been researched in the current literature, though not enough, and there is high contradiction among the writers. It moves beyond a focus on individual behavior towards a wide range of social and environmental interventions. Preservation or separation may make the most sense when the merging firms display greatly different businesses and cultures, and more humble or gradual integration is desirable or feasible. Electronic health record, Health care, Health care provider 2504 Words 7 Pages The Agency Problem and Control of the Corporation, Mergers and Acquisitions The Agency Problem and Control of the Corporation Corporate managers are the agents of shareholders. Organizations are coming together one way or another to realize emerging commercial opportunities.

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Mergers and Acquisitions : A Comparative Review of Literature

literature review on mergers and acquisitions in banking

Nowadays, due to the highly globalized market, the failure of a large bank like Lehman Brothers affects the markets worldwide Gupta and Chevalier 2005. The expected benefits of the acquisition are the incremental cash flows generated by the combination of the previously independent firms. A couple of decades ago, the growth strategy was based, mainly, on organic growth. The companies that demand credit lines and equity offerings are becoming larger. This paper has benefited from valuable insights from a large number of individuals. On the contrary, the evidence is highly disappointing showing that a great percentage of the deals have a negative outcome.

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Mergers and Acquisitions of Financial Institutions: A Review of the Post

literature review on mergers and acquisitions in banking

In the context of a research paper or thesis the literature review is a critical synthesis of previous research. It's technically called a Section 368 reorg. Also, further research should be contacted on the importance of middle management in the deals, and finally writers almost totally ignore the simple employees as a sample for the research in the field. When a corporate culture is established, it provides employees with identity and stability, which in turn provide the corporation with commitment Pikula 1999. The financial risks of merging with or acquiring an organization in another country and how those risks can be mitigated are important issues for corporations to conduct. It can help an enterprise grow rapidly in its sector as well as the new sector it just acquired without the hassle of creating a subsidiary from scratch.

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Merger And Acquisition Literature Review Free Essays

literature review on mergers and acquisitions in banking

Mergers and acquisitions, Monopoly, Privately held company 1297 Words 4 Pages company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. The alternative way by which a company can expand the existing activities is internally or organically University of Leicester 2001. The choice to proceed in merge or an acquisition is considered one of the most important means by which companies respond to changing conditions Bruner 2004 cited Bertoncelj and Kovac 2007. For example, when underwriting equity, banks will be able to draw on the experience from lending and their information from providing payment facilities to the firm. The analysis is based on 508 targets, 1,424 bidders and 388 combined firms covering over 30 countries. But as for the long term, only if corporations cope with the resource integration effectively can they gain the benefits. References 79 Appendix 1 Case Study: The case of the acquisition of Royal Trustco Ltd by the Royal Bank of Canada by Burns and Rosen 1997.


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Mergers and Acquisitions in Banking Sector: Literature Review

literature review on mergers and acquisitions in banking

Managers usually use publicly available information, or, relying on the good faith of the parties, use data from inside the firms. Leadership is vital for the development of the purpose and strategy of an organization Lynh 2003. Most histories of merger and acquisition begin in. To facilitate that purpose managers should focus more on people, their behaviour, the new organizational culture, and values. North American bank mergers are or can be efficiency improving, although the event-study literature presents a mixed picture regarding stockholder wealth creation. Financial Restructuring is a favoured mechanism for firms in red. He presents a New Zeland —based merger between Westpac and TrustBank as a useful demonstration of the possibilities of union involvement contributing to workforce stability.


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(PDF) Mergers and Acquisitions (M&A) in Banking Sector: A Review of the Literature

literature review on mergers and acquisitions in banking

It will synthesize and evaluate the data, and explain the importance of the topic to establish ways to cite statistics how social support. It is based on the concept that leaders, subordinates, and strategies must come in to some sort of compromise if they are to be successfully carried forward. In fact, financial firms of about the same size and providing roughly the same services can have very different cost levels per unit of output Walter 2004. Material resources and financial capital, the efficient use of which is considered a competitive advantage, were key resources some decades ago but nowadays they are to a lesser extent. . This trend reflects an important change over the past several decades in the means through which the market disciplines corporate behavior.

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Mergers and Acquisitions of Financial Institutions: A Review of the Post

literature review on mergers and acquisitions in banking

It must be expressed in a language and with a commitment that all of those involved can understand and feel relevant to their own circumstances. There are a number of reasons for why it may be cheaper to provide a large range of products and services than offering only highly specialized services Gupta and Chevalier 2005 : A Reusability of Information Banks are essentially information intermediaries and information produced in a lending relationship will be also useful either if the company wants to issue debt or equity. Corporations have to find ways to expand and grow if they do want to survive, and keep ahead in the market. Jackson 1992 , Is the Market Well Defined in Bank Merger and Acquisition Analysis? Market power allows firms to charge more or pay less for the same product or service. This may be more relevant to the case of commercial banks acquiring investment banks. Job analysis is the process of obtaining information about jobs i. Mergers and acquisitions 1650 Words 5 Pages important reasons for mergers or amalgamations: 1.


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Merger And Acquisition Literature Review Free Essays

literature review on mergers and acquisitions in banking

This has resulted in defections and extensive displeasure among Barings' staff Balmer and Dinnie 1999. Kearney 2000 cited Bertoncelj and Kovac 2007:168 , 58 percent of all mergers, acquisitions and other forms of corporate restructuring fail to produce results rather than create value. With respect to combined firms, the results find that combined firms obtain higher announcement returns when investor protection measured as the combination of the antidirector rights index in a target and bidder country is strong. Creating the greatest possible added value remains the most important goal of every company regardless of its organizational form, size or evolutional phase. Furthermore, it was found that the performances of financial sectors were comparatively better than non-financial sector.

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