Prepare 2 short research proposals on one topic. List of topics for research proposals : 1.Contemporary issues in the foreign exchange market 2.Banking market structure and firm performance - Essay Example

Research proposal on Banking Market Structure and Firm Performance Overview of the Topic The banking industry is very crucial in the economy. Without banking, an economy cannot grow, (Stowel, 2012). Since the economy is the backbone of growth and development, without banking countries cannot develop or grow. In fact, countries with a poor banking system are underdeveloped while the countries with a good banking system are normally countries that are highly developed. According to Hassan & Curt (2006), it is important to understand the banking market structure in order to analyze the performance of business establishments and firms that are involved in the banking industry.

It is through this evaluation of the banking market structure and firm performance that one can determine the position in which a banking market is at. Research Questions Firstly, the research will investigate the effect mergers and acquisitions have had on the banking market Secondly, it will investigate the nature of the relationships between different firms in the banking market? Thirdly, investigate the effect of the different relationships that firm in the banking market have. Fourthly the research will investigate on the type of competition in the banking market.

Finally, it will investigate on the effects the various types of competition have on the firms in the banking market. Data Required to Answer Any One Question I intend on conducting a research on the first question, which is the effect mergers and acquisitions have had on the banking market industry specifically in Europe. To investigate this question I will need to collect data on the top five bank mergers in the European region between the year 2000 and 2012. I will collect data on the share prices of each bank before it merged.

I will then collect data on the share prices of the new banks after the mergers. I will then collect data on the annual post tax profit these banks made in the previous five years before the merged. Finally, I will collect data on the post tax profit the firms made after the mergers. I will also collect data on the changes in the market prices of different banks as a result of specific mergers. Proposed Methodology Here, I will first use Random probability sampling to get the top five mergers between 2000 and 2005.

For me to get the data required, I will have to interview personnel of the London exchange market, on their views on which mergers they consider the top five mergers in the banking industry. I will sample at least 15 stock broker agents, who work for different companies. After coming to a conclusion on which are the top five mergers between 2000 and 2011, I will go to the specific companies asking for the financial reports from the specified period. I will also look for past financial statements of the individual firms involved in the market before the mergers.

It is important to note that financial statements of firms in the stock exchange are readily available to the public. References Hassan, I & Curt, W., 2006, Bank and Financial Market Efficiency: Global Perspectives, Emerald Group, West Yorkshire. Stowell, D., 2012, Investments Banks, Hedge Funds and Private Equity, Academic Press, San Diego.