We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

The Efficiency Effects of Mergers and Acquisitions in Malaysian and US Banking Institutions - Term Paper Example

Comments (0)
The Efficiency Effects of Mergers and Acquisitions in Malaysian and US Banking Institutions Table of Contents 1.Introduction 3 2.Overview of Malaysian and US Banking Sector 4 3.Mergers and Acquisitions in Malaysian and US Banking Institutions 7 4.Effect of Mergers and Acquisitions in Banking Institution along with the Financial Market of Malaysia and US 8 5.Conclusion 10 Reference 11 1…
Download full paper
The Efficiency Effects of Mergers and Acquisitions in Malaysian and US Banking Institutions
Read TextPreview

Extract of sample
The Efficiency Effects of Mergers and Acquisitions in Malaysian and US Banking Institutions

Download file to see previous pages... The effect of globalisation on trade and business is the most prominent aspects and this has created the impotence of deregulation for encouraging economic growth. These market deregulations have intensified the market competition and the existing players are trying to gain upper hand position in the market. In this regard, Hope and Maeleng have mentioned free trades as “competition–enhancing devise” (Hope and Maeleng, p.61). In such competitive business environment, every organisation is trying to be larger in terms of value, market size, consumer base etc. However, achieving rapid growth is tedious and long term process that may cause in not catering the available opportunities before rivals and this process of growth is known as organic growth. On the other hand, mergers & acquisitions (M&A) leads to achieve a rapid organisational growth. Today, M&A has become very popular strategies for the business and market expansion in domestic and in international market. However, M&A is riskier strategy as it influences the engaged companies as well as the entire market (Hagelm p.155-157). This paper will present a discussion on the effect of M&A on banking institutions and financial markets of Malaysia. 2. Overview of Malaysian and US Banking Sector USA is highly developed nation with a huge financial market. Prior to the financial crisis of 2007-2008 US market was considered to be the most stable financial market. The period of the latest financial crisis has made the entire financial market weak as many top financial institutions including top banks like Lehman Brothers have collapsed severely. Since 2007 till 2009 US banking sector have experienced several bank failures and merged. The statistics are presented below in the table. Table 1: (Source: Fahlenbrach, Prilmeier and Stulz, p.40) However, Now US banks are attempt to recover from the crisis as the banks like JPMorgan and Goldman Sachs are showing considerable growth (Ferreras, “US Banking Sector Endeavors Recovery—Research Report on Goldman Sachs and JPMorgan Chase’s”). However, majority banks are still facing crunch situation and hence, many have commented that it will take a significant time to recover. On the other hand, market indices for US banking sectors depict a positive result which has been presented below. Figure 1 (Source: Fahlenbrach, Prilmeier and Stulz, p.33) Malaysian is a one of the rapidly developing countries in the Asia Pacific region. The effects of the financial crisis of 2007-2008 were on the most of world economies directly or indirectly. However, in case of Malaysian economies it was not hurt significantly and hence, its banking sector kept growing during financial crisis. Bank Negara Malaysia is central banking responsible for regulating other commercial and other investment institution. The following table represents number of financial institution including banks as per November 2009. Table 2 (Source: MIDA, “Banking, Finance and Exchange Administration”) Malaysia banking has anticipated a growth in loan amount in during 2010 as it loan amount increased by 12.8% comparing to previous years. Analysts, Lin and Mee have commented that “Within the retail segment, mortgages, hire purchase and credit card loans grew by 13.2 per cent, 7.7 per cent and 14.2 per cent respectively” ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Mergers & Acquisitions. Sprint-T-Mobile
The potential Sprint-T-Mobile merger is one of most discussed topic in the US telecom industry. More than the merger between the two, the cause of concern is the future of T-Mobile which will have to merge with either of other service providers for survival.
5 Pages(1250 words)Term Paper
Inequality in American Institutions
More so, it gives a chance of addressing the escalating crises in American society in the last few years which involves worst economic predicaments in decades, polarizing debate on immigration, rapid rise in health care costs, and continued growth of economic inequality (Francis, 1945).
7 Pages(1750 words)Term Paper
Accounting For Financial Instruments For Securities and Investment Companies and Banking Institutions
The accounting policy SFAS 157 (ASC 820-20) Fair Value Measurement has an effect that cuts across a number of industries. The impact of the Fair value Measurement accounting policy on the different industries will extend far into the future although its application of the accounting policy across many industries varies considerably.
6 Pages(1500 words)Term Paper
Effects on economic efficiency of government price controls and taxes
The demand curve is of great use to measure complete consumer surplus in a market. It shows the eagerness of a consumer to buy a good at various prices (Gillingham & IMF, 2008). Consumers are eager to buy a commodity up to the level where the marginal gain of consuming the commodity is equivalent to its cost.
5 Pages(1250 words)Term Paper
Human Resources Planning in Mergers and Acquisitions
Early involvement of the Human resources team i.e. involvement as soon as the companies start evaluating the possibility of merger or acquisition and the probable targets, is one of the most important ways by which the M&A can increase the possibility of success of the merger.
8 Pages(2000 words)Term Paper
Export Final Project - Malaysian fashion retailer wishing to expand its business into the African Market
Perhaps it is important to note the fact that the competition in the apparel industry is quite high considering the huge number of players within the industry (Rasiah 540). When it comes to ranking of clothing exports, Malaysia is at the same level with Sri Lanka, Morocco, Tunisia, and Poland, which more or less share the same cultures and customs (Khadmudin para.
10 Pages(2500 words)Term Paper
Economic efficiency concepts
The general concern of microeconomics is the efficient allocation of scarce resources between alternative uses but more specifically it involves the determination of price through the optimizing behavior of economic agents, with consumers maximizing utility and firms
6 Pages(1500 words)Term Paper
IFRS effects on banking
The foremost affect of the use of IFRS instead of GAAP will affect the general presentation of the financial statements as the requirements differ from each other. Many variations are possible as the IFRS gives a wide range of choices for the presentation and
2 Pages(500 words)Term Paper
Government Contract/Acquisitions Competition Requirement
In this paper, we are going to examine subpart 15.4, which is concerned with solicitation & receipt of proposals & quotations for supplying to the Federal government and its units
3 Pages(750 words)Term Paper
Malaysian Banks
Bank Muamalat Malaysia Berhad for instance charges interest that is contributed as a service fee. Hence, masking of this not shariah compliance because service fees are masked with interest. Additionally, it is clear that the
2 Pages(500 words)Term Paper
Let us find you another Term Paper on topic The Efficiency Effects of Mergers and Acquisitions in Malaysian and US Banking Institutions for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us