Evaluating the value of financial institutions acquisitions made during the financial crisis of 2008 to 2009.

This paper examined 95 M&A transactions made from 2008 to 2009 in North America to determine if value creation existed for financial institutions acquirers during a financial crisis. Past literature has expressed contrasting views of whether value was created for these acquirers in this special...

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Main Authors: Lee, Kok Mun., Tan, Jian Sheng., Tan, Xiang Long.
Other Authors: Leon Chuen Hwa
Format: Final Year Project
Language:English
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10356/48112
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-481122023-05-19T05:41:35Z Evaluating the value of financial institutions acquisitions made during the financial crisis of 2008 to 2009. Lee, Kok Mun. Tan, Jian Sheng. Tan, Xiang Long. Leon Chuen Hwa Nanyang Business School DRNTU::Business::Finance::Mergers and acquisitions This paper examined 95 M&A transactions made from 2008 to 2009 in North America to determine if value creation existed for financial institutions acquirers during a financial crisis. Past literature has expressed contrasting views of whether value was created for these acquirers in this special situation. In this study, we employed an event study methodology and found that on average, our sampled firms exhibited a positive cumulative average abnormal return (CAAR) of 2.24% on the announcement day at a significance level of 0.001. We delved into the attributes of firms which obtained higher returns on the announcement date to identify the contributing factors. To do this, we regressed the variables of market capitalisation, tier 1 capital ratio and return on equity (ROE) of the acquirers against the announcement day CAAR to determine its significance. Our results revealed that return on equity and market capitalisation had a negative and positive relationship with announcement day CAAR respectively. However, there was no significant relationship between tier 1 capital ratio and announcement day CAAR. BUSINESS 2012-03-16T04:35:00Z 2012-03-16T04:35:00Z 2012 2012 Final Year Project (FYP) http://hdl.handle.net/10356/48112 en Nanyang Technological University 42 p. application/pdf
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic DRNTU::Business::Finance::Mergers and acquisitions
spellingShingle DRNTU::Business::Finance::Mergers and acquisitions
Lee, Kok Mun.
Tan, Jian Sheng.
Tan, Xiang Long.
Evaluating the value of financial institutions acquisitions made during the financial crisis of 2008 to 2009.
description This paper examined 95 M&A transactions made from 2008 to 2009 in North America to determine if value creation existed for financial institutions acquirers during a financial crisis. Past literature has expressed contrasting views of whether value was created for these acquirers in this special situation. In this study, we employed an event study methodology and found that on average, our sampled firms exhibited a positive cumulative average abnormal return (CAAR) of 2.24% on the announcement day at a significance level of 0.001. We delved into the attributes of firms which obtained higher returns on the announcement date to identify the contributing factors. To do this, we regressed the variables of market capitalisation, tier 1 capital ratio and return on equity (ROE) of the acquirers against the announcement day CAAR to determine its significance. Our results revealed that return on equity and market capitalisation had a negative and positive relationship with announcement day CAAR respectively. However, there was no significant relationship between tier 1 capital ratio and announcement day CAAR.
author2 Leon Chuen Hwa
author_facet Leon Chuen Hwa
Lee, Kok Mun.
Tan, Jian Sheng.
Tan, Xiang Long.
format Final Year Project
author Lee, Kok Mun.
Tan, Jian Sheng.
Tan, Xiang Long.
author_sort Lee, Kok Mun.
title Evaluating the value of financial institutions acquisitions made during the financial crisis of 2008 to 2009.
title_short Evaluating the value of financial institutions acquisitions made during the financial crisis of 2008 to 2009.
title_full Evaluating the value of financial institutions acquisitions made during the financial crisis of 2008 to 2009.
title_fullStr Evaluating the value of financial institutions acquisitions made during the financial crisis of 2008 to 2009.
title_full_unstemmed Evaluating the value of financial institutions acquisitions made during the financial crisis of 2008 to 2009.
title_sort evaluating the value of financial institutions acquisitions made during the financial crisis of 2008 to 2009.
publishDate 2012
url http://hdl.handle.net/10356/48112
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