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...
Saved in:
Main Authors: | , , |
---|---|
Other Authors: | |
Format: | Final Year Project |
Language: | English |
Published: |
2012
|
Subjects: | |
Online Access: | http://hdl.handle.net/10356/48112 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Institution: | Nanyang Technological University |
Language: | English |
id |
sg-ntu-dr.10356-48112 |
---|---|
record_format |
dspace |
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 |
_version_ |
1770566152809873408 |