THE RELATIONSHIP BETWEEN MERGER & ACQUISITION AND BANK RISKS

Auteurs-es

  • Hussein Ahmad Bataineh Research Scholar, Finance Department, Jordan University, Amman, Jordan
  • Raqiya Ali Al Balushi Internal Auditor, Bank Muscat, Oman
  • Sulaiman Salim Al Harthy Senior Islamic Banking Analyst, Central Bank of Oman, Oman

DOI :

https://doi.org/10.46827/ejefr.v4i4.996

Mots-clés :

merger & acquisition, bank risk, orbs

Résumé

This study aimed to investigate the relationship between merger & acquisition and bank risks. The sample of the study consisted of 55 commercial banks sector listed on Orbs from (2011-2016). The results of the study showed that there is no relationship between the net benefit and bank`s risk, and also there is no relationship between the capital ratio and bank`s risk, and also there is no relationship between the equity ratio and bank`s risk, that there is a relationship between the capital ratio and bank`s risk. Generally, we note no relationship between the merger & acquisition and banks risk. The recommended of the study recommended that the most important of which are the concentration of banks in general on the level of losses they suffer due to the loans extended to customers and other institutions. JEL: G10; G21; G15

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Biographies de l'auteur-e

  • Hussein Ahmad Bataineh, Research Scholar, Finance Department, Jordan University, Amman, Jordan
    Hussein Ahmad Bataineh is working in Banking sector since 2016. He has a good knowledge in different departments in Banking sector. Regarding to the education, he got MSC in Banking and Finance Bangor University (United Kingdom) Master of Science – Banking and Finance in July 2019, achieving an average total mark of 76%, with a degree classification: Distinction. BSC in Finance Bachelor’s degree in Finance from University of Jordan January 2016. During his education and carer journey he was awarded: 1. Academic excellence certificate from Bangor University 2. Award from United Nations Relief and Works Agency (UNRWA) for effective participation in helping Syrian refuges.
  • Raqiya Ali Al Balushi, Internal Auditor, Bank Muscat, Oman
    Raqiya Ali Al Balushi: I held various positions in Bank Muscat with the Internal Auditor position as the latest one. I had worked in the human resources department, which provided me knowledge on human behaviour. I am interested in fully grasping the best approaches in interacting with employees to harness them potential, promote their growth, and make them assets of the organization. As an internal auditor, I understand the financial aspect of the business operation with a perspective of human resources management to align the capital and the workforce. I have worked as an internal auditor since 2015. In between responsibilities in Bank Muscat, I pursued my Master’s degree in banking and finance from Bangor University in the United Kingdom with Distinction. The experience enriched knowledge in audits, control points, deviations, and action plans. I conducted special audits and investigations on request of the senior management or the Board of Directors.
  • Sulaiman Salim Al Harthy, Senior Islamic Banking Analyst, Central Bank of Oman, Oman
    Sulaiman Al Harthy: Senior Islamic Banking Analyst at Central Bank of Oman.

Références

Beccalli, E. and Frantz, P. (2015). M&A operations and performance in banking, Elena Beccalli, Accounting and Finance Department, London School of Economics and Political Science, Houghton Street, London WC2A 2AE.

Joash, G. and Njangiru, M. (2016). The Effect of Mergers and Acquisitions on Financial Performance of Banks (A Survey of Commercial Banks in Kenya), Internal national Journal of Innovative Research and Development, Vol. 4, Issue. 8, PP. 101-114.

Kiselakova, D. and Sofrankova, B. (2015). Effects and Risks of Mergers and Acquisitions on Entrepreneurship in Banking and Finance: Empirical Study from Slovakia, Review of European Studies, Vol. 7, No. 7, PP. 23-35.

Marembo, J. (2012). The Impact of Mergers and Acquisition on the Financial Performance of Commercials Banks in Kenya, Master Thesis, University of Nairobi, Nairobi, Kenya.

Masud, N. (2015). Impact of Merger and Acquisition on Financial Performance of Banks: Evidence from Pakistan, Research Journal of Recent Sciences, Vol. 4, No. 5, PP. 108-113.

Novickytė, L. & Pedroja, G. (2015). Assessment of Mergers and Acquisitions in Banking on Small Open Economy as Sustainable Domestic Financial System Development, Economics, Vol. 8, No. 1, PP. 72-88.

PWC. (2013). Sharing deal insight European Financial Services M&A news and views. Retrieved from http://www.pwc.com/en_GX/gx/financial-services/european-mergers-acquisitions-industry-trends/assets/pwc-sharing-deal-insight-european-financial-services-m-and-a-news-and-views-v2-pdf.

Sofrankova, B. (2013). An analytical view on development of mergers and acquisitions in the world and in the Europe. Exclusive Journal: Economy & society & environment, 1(1), 14-22.

Zisi, S. (2014). Mergers and Acquisitions in the UK Banking Industry and their Impact on the Shareholders’ Wealth, Master Thesis, Tilburg University, Tilburg.

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Publié

2021-02-07

Numéro

Vol. 4 No. 4 (2021)

Rubrique

Articles