An evaluation of bank acquisition using an accounting based measure: a case of Amalgamated Bank of South Africa and Barclays Bank Plc.
-
Received January 6, 2017;Accepted February 10, 2017;Published May 5, 2017
- Author(s)
-
DOIhttp://dx.doi.org/10.21511/bbs.12(1-1).2017.09
-
Article InfoVolume 12 2017, Issue #1 (cont.), pp. 160-165
- TO CITE АНОТАЦІЯ
-
Cited by1 articlesJournal title: Vision: The Journal of Business PerspectiveArticle title: Mergers and Acquisitions in the Banking Sector: A Systematic Literature ReviewDOI: 10.1177/09722629241275326Volume: / Issue: / First page: / Year: 2024Contributors: Baishali Chakraborty, Ashim Kumar Das
- 1786 Views
-
1168 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
In 2005, Barclays Bank Plc acquired 56.4 percent stake of Amalgamated Bank of South Africa (ABSA). The performance of this acquisition has never been evaluated. Therefore, the purpose of this article is to evaluate the performance of the acquired ABSA through an accounting based measure. The primary source of data was the 2004-2015 ABSA audited financial statements. The audited financial statements are publicly available. The period 2004-2015 includes a period before, during and after the acquisition. In this article, a financial statement analysis method through accounting based measure was the preferred research method. The financial statement analysis method was preferred because of its strength and ability to assess viability, stability and profitability by using formulae, ratios and calculations. Therefore, this article used financial formulae and ratios as acceptable accounting based measures to evaluate the performance of the acquired ABSA. The major finding is that the acquired ABSA is doing better than at the pre-acquisition stage and the share price of the acquired ABSA has been increasing since 2005 to 2015.
- Keywords
-
JEL Classification (Paper profile tab)G34, G21
-
References28
-
Tables1
-
Figures1
-
- Fig. 1. The financial performance of the acquired Amalgamated Bank of South Africa for the period 2006-2015
-
- Table 1. Summary of financial results for ABSA / Barclays Plc.
-
- ABSA Annual Report. (2015). Annual Consolidated and Separated Financial Statements. Barclays Africa Group Limited.
- Abraham, R., Harris, J., & Auerbach, J. (2017). Earnings Yield as a Predictor of Return on Assets, Return on Equity, Economic Value Added and the Equity Multiplier. Modern Economy, 8, 10.
- Ahmed, A., & Nadeem, M. (2015). Mergers & Acquisitions and Banks Performance in Pakistan.
- Akhtar, S., & Iqbal, J. (2014). An Empirical Analysis of Pre and Post Merger or Acquisition Impact on Financial Performance: A Case Study of Pakistan Telecommunication Limited. European Journal of Accounting Audting and Finance Research, 3, 69-80.
- Alexandridis, G., Petmezas, D., & Travlos, N. G. (2010). Gains from Mergers and Acquisitions Around the World: New Evidence. Financial Management, 39, 1671-1695.
- Arvanitis, S., & Stucki, T. (2015). Do Mergers and Acquisitions among Small and Medium-Sized Enterprises Affect The Performance of Acquiring Firms? International Small Business Journal, 33, 752-773.
- Chen, C.-W., Collins, D. W., Kravet, T. D., & Mergenthaler, R. (2016). Financial Statement Comparability and the Efficiency of Acquisition Decisions.
- Claessens, S., & Horen, N. (2014). Foreign Banks: Trends and Impact. Journal Of Money, Credit And Banking, 46, 295-326.
- Collett, N. (2015). Mergers and Acquisitions. Wiley Online Library.
- Creswell, J. W. (2013). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. Sage Publications.
- Hitt, M. A., King, D., Krishnan, H., Makri, M., Schiiven, M., Shimizu, K., & Zhu, H. (2012). Creating Value through Mergers and Acquisitions. The Handbook of Mergers and Acquisitions, 71.
- Irfan Shakoor, M., Nawaz, M., Zulqarnain Asab, M., & Khan, W. A. (2014). Do Mergers and Acquisitions Vacillate the Banks Performance? (Evidence from Pakistan Banking Sector). Research Journal of Finance And Accounting, 5, 123-137.
- Lin, D., Barth, J., Jahera, J., & Yost, K. (2013). Cross-Border Bank Mergers and Acquisitions: What Factors Pull and Push Banks Together? Review of Pacific Basin Financial Markets and Policies, 16, 1350022.
- Linde, S., & Siebert, R. (2016). Do Mergers among Multimarket Firms Create Value?
- Mayo, H. (2016). Basic Finance: An Introduction to Financial Institutions, Investments and Management. Nelson Education.
- Minnis, M., & Sutherland, A. (2016). Financial Statements as Monitoring Mechanisms: Evidence from Small Commercial Loans. Journal of Accounting Research.
- Pahuja, A., & Aggarwal, S. (2016). Impact of Mergers and Acquisitions On Financial Performance: Evidence From Indian Banking Industry.
- Pilloff, S. J. (1996). Performance Changes and Shareholder Wealth Creation Associated with Mergers of Publicly Traded Banking Institutions. Journal of Money, Credit and Banking, 28, 294-310.
- Roberts, A., Wallace, W., & Moles, P. (2010). Mergers and Acquisitions. Pearson Education.
- Ross, S., Westerfield, R., Jordan, B., & Firer, C. (2012). Fundamentals of Corporate Finance, First South African Edition. London: Irwin.
- Sabri, M. F. M., Ezman, S. M., & Zainal, H. (2015). The Impact of Banks’merger and Acquisition Towards Stock Performance of the Rival Banks In Thailand.
- Sekaran, U., & Bougie, R. J. (2016). Research Methods for Business: A Skill Building Approach. John Wiley & Sons.
- Tayeh, M., Al-Jarrah, I. M., & Tarhini, A. (2015). Accounting Vs. Market-Based Measures of Firm Performance Related to Information Technology Investments.
- Uhlenbruck, K., Hughes-Morgan, M., Hitt, M. A., Ferrier, W. J., & Brymer, R. (2016). Rivals’ Reactions to Mergers and Acquisitions. Strategic Organization, 1476127016630526.
- Uremadu, S., Nwokocha, E., & Onyike, S. (2016). Effects of Mergers And Acquisitions On Commercial Bank Credit to Small Businesses In Nigeria.
- Wanke, P., Maredza, A., & Gupta, R. (2016). Merger and Acquisitions in South African Banking: a Network Dea Model.
- Weinberg, M. (2007). The Price Effects of Horizontal Mergers. Journal of Competition Law and Economics, 4, 433-447.
- Yadav, S. (2016). Performance Evaluation of Banking Sector in India. Sumedha Journal of Management, 5, 67.
-
Investigating the impact of workplace bullying on employees’ morale, performance and turnover intentions in five-star Egyptian hotel operations
Ashraf Tag-Eldeen , Mona Barakat , Hesham Dar doi: http://dx.doi.org/10.21511/tt.1(1).2017.01In today’s competitive business environment, human resources are one of the most critical assets particularly for service-focused organizations. Consequently, employees’ morale has become invaluable for maintaining outstanding organizational performance and retaining employees. One of the most important factors which may affect employees’ satisfaction is workplace bullying from employers and colleagues at large. It is considered a negative and unethical issue which may degrade, humiliate and create a risk to a healthy working environment. Therefore, the main objective of this research is to investigate the extent to which workplace bullying may affect the organizational outcomes of a sample of five-star hotels in Egypt. Two questionnaires were distributed among the subjects of the sample; bell desk staff, kitchen stewards and head departments. The results of this research confirmed that there is a correlation between workplace bullying, employees’ morale and turnover intentions but, showed no correlation between workplace bullying and employees’ work performance.
-
Corporate governance and financial performance: an empirical analysis of selected multinational firms in Nigeria
Gideon Tayo Akinleye , Odunayo Olarewaju , Bamikole Samson Fajuyagbe doi: http://dx.doi.org/10.21511/ppm.17(1).2019.02Problems and Perspectives in Management Volume 17, 2019 Issue #1 pp. 11-18 Views: 3386 Downloads: 568 TO CITE АНОТАЦІЯThis study focused on corporate governance and performance of selected Nigerian multinational firms from 2012 to 2016. Specifically, the study focused on the effect of board size, activism and committee activism on return on asset and firm growth rate. Secondary data collected from four multinational firms were analyzed via static panel estimation techniques. While board size and board activism exerted significant negative impact on return on asset, committee activism exerted insignificant impact. The results of the study further showed that board size and board activism exert insignificant negative impact on firm’s growth rate, while committee activism insignificantly spurs firm’s growth rate. Decisively, discoveries from this study reflect that corporate governance has significant negative impact on return on asset, but has insignificant influence on the growth rate of Nigerian multinational firms. Based on these findings, the authors recommended that corporate governance dynamics in firms world over should be reconsidered, such that it gives credence to more than just numbers of persons or meetings held, but the main reasons and deliberations in such meetings. It was also recommended that excessive increase in magnitude or frequency of meetings held by board of directors cum committee should be avoided.
-
Factors affecting non-performing loans of commercial banks: the role of bank performance and credit growth
Le Kieu Oanh Dao , Thi Yen Nguyen , Sarfraz Hussain , Van Chien Nguyen doi: http://dx.doi.org/10.21511/bbs.15(3).2020.05Banks and Bank Systems Volume 15, 2020 Issue #3 pp. 44-54 Views: 3029 Downloads: 806 TO CITE АНОТАЦІЯThe recent crisis of non-performing loans in the banking system has hit the Vietnamese economy hard. The GDP has been fallen down, while the bad debt ratio in the banking system has risen dramatically to 17.2 percent, and it takes more time to restore the economy and banking system. This research aims to define aspects that impact non-performing commercial bank loans in Vietnam. It covers the period of 2008–2017 using 200 identified banks of Ho Chi Minh City Stock Exchange and Hanoi Stock Exchange, and applies methods based on the regression of pooled ordinary least squares, fixed and random effects models, in particular, generalized least squares to confirm the stability of the regression model. The results show that non-performing loans this year will positively affect those in the next year. In addition, a raise in bank performance and credit growth also leads to the reduction in non-performing loans from banks. Regarding macroeconomic factors, higher interest rates would have a major and beneficial influence on failed loans in terms of macroeconomic dynamics, and, therefore, little effect on economic activity and inflation. Therefore, Vietnamese banking system should reduce the systematic risk and improve monitoring processes, drawing on the experience of global banks with extensive experience in risk management.