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Merger Activity (merger + activity)
Selected AbstractsBoard Monitoring, Regulation, and Performance in the Banking Industry: Evidence from the Market for Corporate ControlCORPORATE GOVERNANCE, Issue 5 2010Jens Hagendorff ABSTRACT Manuscript Type: Empirical Research Question/Issue: The specific monitoring effect of boards of directors versus industry regulation is unclear. In this paper, we examine how the interaction between bank-level monitoring and regulatory regimes influences the announcement period returns of acquiring banks in the US and twelve European economies. Research Findings/Insights: We study three board monitoring mechanisms , independence, CEO-chair duality, and diversity , and analyze their effectiveness in preventing underperforming merger strategies under bank regulators of varying strictness. Only under strict banking regulation regimes, do board independence and diversity improve acquisition performance. In less strict regulatory environments, corporate governance is virtually irrelevant in improving the performance outcomes of merger activities. Theoretical/Academic Implications: Our results indicate a complementary role between monitoring by boards and bank regulation. This study is the first to report evidence consistent with complementarity by investigating the effectiveness (rather than the prevalence) of governance arrangements across regulatory regimes. Practitioner/Policy Implications: Our work offers insights to policymakers charged with improving the quality of decision-making at financial institutions. Attempts to improve the ability of bank boards to critically assess managerial initiatives are most likely to be successful if internal governance is accompanied by strict industry regulation. [source] INNOVATION AND COMPETITION IN GENERATION AND RETAIL POWER MARKETSECONOMIC AFFAIRS, Issue 2 2010Elizabeth Hooper There has been considerable merger activity in EU energy markets in recent years. It could be argued that competition authorities should be required to take into account potential innovation effects of mergers. In the UK, regulators are now trying to achieve multiple objectives within the current framework. There is a danger that if markets are expected to deliver mutually incompatible objectives they will be unable to achieve any of them. [source] Determinants of the Size and Composition of US Corporate Boards: 1935-2000FINANCIAL MANAGEMENT, Issue 4 2009Kenneth M. Lehn We examine the determinants of the size and composition of corporate boards for a sample of 82 US companies that survived during the period 1935-2000. Our hypotheses lead to predictions that firm size, growth opportunities, merger activity, and geographical expansion are important determinants of these board characteristics. We find empirical evidence that the four variables are significant determinants of the size and/or composition of boards. After controlling for these determinants of board characteristics, we find no robust relation between firm performance and either board size or composition. [source] Improving Auditor Independence Through Selective Mandatory RotationINTERNATIONAL JOURNAL OF AUDITING, Issue 2 2002Miles B. Gietzmann When an auditor receives significant fee income from one client it has often been suggested that reappointment concerns may dilute auditors incentives to maintain independence from management. A possible response to this issue could be to mandate the rotation of auditors. However this is costly since new auditors must repeatedly invest in learning a new clients accounting system. In this research we build a model to formally analyze this trade-off. We find that the desirability of rotation depends critically upon characteristics of the audit market structure and to what extent an individual client dominates an auditors' client portfolio defined in terms of total fees. We show that although rotation is costly, in audit markets with relatively few large clients (thin markets), the resulting improved incentives for independence outweigh the associated costs. Our research is timely because although historically it may not have been economically desirable to adopt mandatory rotation, currently with increased corporate merger activity taking place, for instance in the oil sector, markets may now have become sufficiently thin to warrant the introduction of rotation. [source] Incomplete Contracting, Commission Discretion and the Origins of EU Merger Control,JCMS: JOURNAL OF COMMON MARKET STUDIES, Issue 3 2009THOMAS DOLEYS Council Regulation 4064/89 on the Control of Concentration between Undertakings, more commonly known as the Merger Regulation , was a watershed development in the evolution of the EU's competition policy regime. In this article we seek to cast new analytical light on what, in many respects, is an established narrative. To do this we draw on insights from the new institutional economics (NIE). Specifically, we draw on the complementary concepts of incomplete contracting and delegation. We demonstrate how the Commission utilized the discretion attendant to its delegated authority to interpret and apply the indeterminate language of treaty competition articles so as to alter the economic, political and legal environment as it pertained to merger activity. It did so to such an extent that Member States, long resistant to Commission proposals for a merger control regulation, came to regard legislative action as preferable to the uncertainty represented by the evolving status quo. [source] The Competitive Dynamics of Geographic Deregulation in Banking: Implications for Productive EfficiencyJOURNAL OF MONEY, CREDIT AND BANKING, Issue 5 2008DOUGLAS D. EVANOFF market entry; bank mergers; banking deregulation; cost X-efficiency Deregulation of geographic restrictions in banking over the past 20 years has intensified both potential and actual competition in the industry. The accumulating empirical evidence suggests that potential efficiency gains associated with consolidating banks are often not realized. We evaluate the impact of this increased competition on the productive efficiency of non-merging banks confronted with new entry in their local markets and find that the incumbent banks respond by improving cost efficiency. Thus, studies evaluating the impact of bank mergers on the efficiency of the combining parties alone may be overlooking the most significant welfare-enhancing aspect of merger activity. [source] Efficiency in pre-merger and post-merger non-bank financial institutionsMANAGERIAL AND DECISION ECONOMICS, Issue 8 2001Andrew C. WorthingtonArticle first published online: 19 OCT 200 A two-part process is employed to analyse the role of efficiency in merger and acquisition (M&A) activity in Australian credit unions during the period 1993,1997. The measures of efficiency are derived using the non-parametric technique of data envelopment analysis. The first part uses panel data in the probit model to relate pure technical efficiency, along with other managerial, regulatory and financial factors, to the probability of merger activity, either as an acquiring or acquired entity. The results indicate that loan portfolio diversification, management ability, earnings and asset size are a significant influence on the probability of acquisition, though the primary determinant of being acquired is smaller asset size. The second part uses a tobit model adapted to a panel framework to analyse post-merger efficiency. Mergers appear to have improved both pure technical efficiency and scale efficiency in the credit union industry. Copyright © 2001 John Wiley & Sons, Ltd. [source] The global market for OTC derivatives: An analysis of dealer holdingsTHE JOURNAL OF FUTURES MARKETS, Issue 1 2005Ekaterina E. Emm We provide a descriptive examination of the trading activities of one of the most important intermediaries in global financial markets,the OTC derivatives dealer. These dealers play a central role in the provision of derivative products and in the intermediation of market risks faced by financial and nonfinancial firms alike. Utilizing a unique database, we analyze the derivatives holdings of 264 dealers spanning 34 countries over the period 1995,2001. We document the geographic composition of dealers on both country and regional levels as well as analyze trends in dealer holdings on an aggregate and individual product level. We further analyze the extent of global merger activity among dealers and resulting consolidation effects. Finally, we investigate at the individual dealer level the extent and evolution of their array of product offerings. © 2005 Wiley Periodicals, Inc. Jrl Fut Mark 25:39,77, 2005 [source] NEW ZEALAND CREDIT UNION MERGERSANNALS OF PUBLIC AND COOPERATIVE ECONOMICS, Issue 3 2010Lynn Mcalevey ABSTRACT,:,Research into the benefits of mergers in small financial institutions, in particular credit unions, is sparse. This study helps to fill this gap by analyzing recent intense merger activity in New Zealand credit unions. The major driver for these mergers was not the usual reason of attempting to increase efficiency for competitive purposes but rather enforced government action. Data envelopment analysis is used to explore changes in efficiency in merged credit unions between 1996 and 2001. Those credit unions not involved in merger activity are used as a control group. Overall, credit unions have become more efficient over the period, notably in those that undertook mergers. The Malmquist index indicates significant technological progress over the period but a slight regression in terms of efficiency. [source] | |||||||||||||||||||