Purpose
– This paper aims to examine the productivity and spillover effect of Malaysian horizontal merger and acquisition (M&A) activities in the long run.
Design/methodology/approach
– In terms of analytical tools, economic value added (EVA) and data envelopment analysis (DEA) are used.
Findings
– The results of this study reveal that M&As in the absence of antitrust laws could be driven by managerial self-interest to create market power instead of realizing synergistic gains. Also, in Malaysia, the non-merging rival firms have significantly higher productivity improvement than the control bidder firms, and therefore, this study has identified the spillover effect as a behavior of M&A reaction.
Originality/value
– This paper differs from previous studies in that it attempts not only to examine the real long-term gains of horizontal M&A activities in Malaysia but also the spillover effects of M&A activities on similar but non-merging firms.
This study examines the role of corporate governance on the non-performing loans of the banking sector of Pakistan. The study also examines how the government type either democratic government or dictator government influence the banking industry in nonperforming loans context. This study sample includes all types of banks i-e State owned banks, Private Banks and foreign private banks operating in the Pakistan. This research utilizes the secondary data for the time span of 1996 to 2007. Method of the analysis used for the data is Regression. The study reveals that corporate governance does matter significantly for the nonperforming loans of the banks generally. Specifically board size has positive effect on the non-performing loans while ownership concentration and board independence effect negatively. Furthermore the study explores that during dictator regimes non-performing loans decrease significantly.
This paper investigates the determinants and their factors that affect governments’ decision to employ sovereign Sukuk over conventional bonds; the research is based on a sample of 143 Sukuk and 602 conventional sovereign bonds issued in 16 OIC countries from 2000 to 2015. The results depict that more nations that have developed financial markets, higher credit quality, and strong economic/financial prospects, issue sovereign Sukuk rather than sovereign conventional bonds. Dealing with Sukuk bonds can be a strategy to diversify and develop current debt markets by introducing newly-developed debt tools. However, less economically developed nations countries are typically issuing insurance for classic sovereign bonds. Our findings suggest that a government’s choice of sovereign debt is influenced mainly from national financial and macroeconomic indicators, as well as specific events. Countries with developed financial markets, strong economic indicators, high credit quality, and sustainable financial position are more likely to issue sovereign Sukuk rather than sovereign bonds as a strategy to develop and diversify their financial markets by promoting new debt products.
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