What is the impact of consolidation on the wealth of shareholders in the American Banking sector?

الموضوعات

إدارة

الملخص

For the past two decades, mergers and acquisitions actiVIty m the U.S. banking sector have tremendously increased. The largest U.S. institutions continue to buy smaller institutions such that the number of banks declined from 14,451 at the end of 1982 to 7,283 by year end 2007. During this same period, however, the total number of branches grew from 34,791 to 78,867. In line with the above changes was the deregulation of the banking sector in the Unites States. The above factors encourage U.S. banks and financial institutions to merge in order to save costs and capitalize on the available assets to increase profitability and efficiency.The major benefits behind a merger or acquisition includes:• Achieving economies of scale• Increasing market share• Entry into new markets• Reducing fixed costs• Enhancing bank's bargaining power• Sharing a larger data base• Adding more services to clients.On the other hand, it is important to pinpoint merger and acquisition pitfalls such as the unfitness of two institutions, the conflicts of interest between shareholders and managers, the culture differences between human resources and customers as well as of two banks.Among the advantages and disadvantages; and the success or failure of mergers and acquisitions in the banking sector, shareholders' wealth is influenced accordingly. Shareholders who delegate authority and decision making to top management are looking for an increase in their wealth. The extent to which managers well operate the business determines the profitability of organizations and as well the wealth of shareholders.In order to analyze the success or failure of a given merger or acquisition, several valuation methods are used; namely comparable & discounted cash flow analysis.Comparable analysis uses comparable ratios such as price to book value or EPS ratios. Such ratios are compared to industry peers. While discounted cash flow methods discount the expected future cash flows at a given rate of return.

روابط وملفات

التعريف والنوع

رقم الوثيقة

f0ed2158-8482-4454-a84f-a19a1200fbe4

رقم العقد

0

نوع الوسائط

Crawler

نوع المحتوى

الرسائل العلمية

صيغة المصدر

رسائل ماجيستير

نوع الملف

pdf image

أسماء الملفات

1088691_1.pdf

بيانات النشر

ألقاب المؤلفين

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اللغة

English

المصدر والدورية

اسم المصدر

What is the impact of consolidation on the wealth of shareholders in the American Banking sector?

المحتوى والصفحات

عدد الصفحات

0

كلمات الباحثين

Mergers and acquisitions, Banking sector, Shareholder wealth, Business valuation, Discounted cash flow, Deregulation, Financial efficiency.

إشراف وإعداد

الإشراف

Raja Shaffu

الإعداد

Manal Tabboush

الاقتباسات الببليوغرافية