The purpose of this research is to test the efficiency of market with respect to announcements of mergers and acquisitions using an event study methodology. Specifically, this study analyzed the effects of banks mergers and their announcements on the prices of stocks, in Europe. We study 18 deals that involve banks in Merger and Acquisition from year 2001 to 2010 in order to investigate the returns of shareholder of the targets and acquirers. Evidence here supports that significant cumulative abnormal returns were short lived for the acquirers. At the end of the event window, the cumulative abnormal returns were 0. Evidence of excess returns after the merger announcement was also observed along with the leakage of information that resulted in the rise of stock prices few days before the announcement of merger or acquisition. At the same time, the results of cumulative abnormal returns showed that target banks earned abnormal returns on the merger announcement day.Keywords: Market efficiency, Mergers, Acquisitions, Shareholders, Banks, Information Profitability Analysis of Mergers and AcquisitionsMergers and acquisitions around the globe represent a huge reallocation of resources, within and across countries and therefore, it has been the interest of empirical studies for many years. There have been three merger waves in the 1960s with the multinational takeovers, in the 1980s there were aggressive takeovers and in the 1990s, there were global takeovers. Historically, the huge number of these merger and acquisitions were concentrated in the United States of America and United Kingdom. Extensive research has been done on whether acquisitions are profitable or lead to wealth reduction for shareholders and empirical studies have revealed that mergers tend to provide a mixed performance to the shareholders involved. Research ISSN 2162-4860 2013 www.macrothink.org/ber 90 Sherman et al. (2011) 1 stated that mergers and acquisitions are one of the most effective ways to accelerate the implementation of a plan to grow rapidly. The impact of technology has increased the pace of the mergers and acquisitions. Business and EconomicWhen a merger or an acquisition is announced, a significant amount of information is revealed about that particular deal and this information can be used to evaluate the reaction of stock market to a merger or an acquisition announcement. Mergers and Acquisitions have created an intense competition for all the companies. In this era, acquisitions are increasing at a rapid pace and are being bid up at a higher rate. Banks have been undergoing a process of consolidation and restructuring. Factors such as globalization and competition have compelled banks to improve their effectiveness in providing financial services to meet the increasing demands for quality products and services. This leads to an appropriate assessment of banks performance reflecting their ability to survive the ongoing waves of activities such as mergers and acquisitions. Banks can increase their scale of operations to ge...
This study aims to review the existing literature on big data applications in banking using a bibliometric analysis approach. This approach describes citation rates, research outputs, and their implementations, along with current streams in the field and future research agenda. The articles were selected from 2012 to 2020 and sorted by the citation rate in results and analysis. We have discovered 60 papers related to big data in banking, although the applications of big data in the banking sector are growing rapidly, the number of research output in this field is limited. Several themes are extracted from the studies that are reviewed, analyzed, and presented in this report. This review covered the themes that include investment, profit, competition, credit risk analysis, banking crime, and fintech. This report also signifies the importance, use of big data, and its function in the banking and financial sector. This study has also discussed the future research scope in the banking industry’s big data analytics.
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