An empirical study on the effect of M&A on banks’ performance & shareholders’ value in the US banking sector

This study investigates the impacts of mergers and acquisitions (M&As) on banks’ performance. The focus on a sample of large US banks involved in M&As during the period of 2006 to 2012. An examination of the effects of mergers and acquisitions on banks’ performances is made using the panel d...

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Main Author: ZENG, WEI YUAN
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2013
Online Access:https://eprints.nottingham.ac.uk/26900/
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author ZENG, WEI YUAN
author_facet ZENG, WEI YUAN
author_sort ZENG, WEI YUAN
building Nottingham Research Data Repository
collection Online Access
description This study investigates the impacts of mergers and acquisitions (M&As) on banks’ performance. The focus on a sample of large US banks involved in M&As during the period of 2006 to 2012. An examination of the effects of mergers and acquisitions on banks’ performances is made using the panel data model. The analysis presents evidence that M&A activity has a significant influence on the US banks’ performance. The study involves comparing with bank profitability ratios such as return on equity (ROE) and return on assets (ROA) of both merged banks and non-merged banks. The results indicate that the performances between merged and non-merged banks are different based on ROE and ROA as a measurement; because the former type of banks tend to pursue higher growth, economics of scale and greater capitalisation than non-merged banks. However, results did not show that mergers and acquisitions have a beneficial effect on shareholder’s value as measured by return on equity. Key words: Bank M&A, Profitability and performance, Shareholder Value, ROE and ROA.
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spelling nottingham-269002017-10-19T13:44:44Z https://eprints.nottingham.ac.uk/26900/ An empirical study on the effect of M&A on banks’ performance & shareholders’ value in the US banking sector ZENG, WEI YUAN This study investigates the impacts of mergers and acquisitions (M&As) on banks’ performance. The focus on a sample of large US banks involved in M&As during the period of 2006 to 2012. An examination of the effects of mergers and acquisitions on banks’ performances is made using the panel data model. The analysis presents evidence that M&A activity has a significant influence on the US banks’ performance. The study involves comparing with bank profitability ratios such as return on equity (ROE) and return on assets (ROA) of both merged banks and non-merged banks. The results indicate that the performances between merged and non-merged banks are different based on ROE and ROA as a measurement; because the former type of banks tend to pursue higher growth, economics of scale and greater capitalisation than non-merged banks. However, results did not show that mergers and acquisitions have a beneficial effect on shareholder’s value as measured by return on equity. Key words: Bank M&A, Profitability and performance, Shareholder Value, ROE and ROA. 2013-10-04 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26900/1/Dissertation--finanl_submit_--ZENG.pdf ZENG, WEI YUAN (2013) An empirical study on the effect of M&A on banks’ performance & shareholders’ value in the US banking sector. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle ZENG, WEI YUAN
An empirical study on the effect of M&A on banks’ performance & shareholders’ value in the US banking sector
title An empirical study on the effect of M&A on banks’ performance & shareholders’ value in the US banking sector
title_full An empirical study on the effect of M&A on banks’ performance & shareholders’ value in the US banking sector
title_fullStr An empirical study on the effect of M&A on banks’ performance & shareholders’ value in the US banking sector
title_full_unstemmed An empirical study on the effect of M&A on banks’ performance & shareholders’ value in the US banking sector
title_short An empirical study on the effect of M&A on banks’ performance & shareholders’ value in the US banking sector
title_sort empirical study on the effect of m&a on banks’ performance & shareholders’ value in the us banking sector
url https://eprints.nottingham.ac.uk/26900/