Home Search Sitemap Contact Bookmark

Free Dissertations - Finance Dissertations

Banking Firms That Have At Least 5% Owner (outside Of Executive Management) ...


Banking firms that have at least 5% owner (outside of executive management) were classified as manager controlled.
The first hypothesis was tested in a zero-inflated negative binomial model because ordinary least squares-based linear models can yield biased and inefficient estimates when the dependent variable in a count measure (Long, 1997). In most cases where the dependent variable is a count of the number of times an event occurs, some variation of a Poisson regression model is generally appropriate (Long 1997) and this model is accommodated with LIMDEP (Greene, 1995) statistical software.


Sources of Data and Information
The balance-sheet data come from the Bank Supervision Register at the Bank of Italy
The figures on asset diversification are calculated using data from the Central Credit Register.
The source on the data of the number of banks and on the mergers & acquisitions is the Census of Banks.
US Compustat Research File

Methods for gathering and processing data related to each objective
The financial data can be extracted from annual accounts.
Questionnaires to

(9) Literature Review

(10) Methodology
Show how you will use the methodology of the relevant articles in the methodology of the proposal outline.
State: whether it is qualitative or quantitative data - BOTH.
Bank consolidation is extremely complicated, especially when conducted in a new country or geographical area. Given that the gains for the acquiring firm in terms of increases in shareholder wealth are not easily realised, it has been suggested that a more strategic-orientated study is needed. This particularly area of research to date appears to be focused on mergers rather than acquisitions, although there is no reason why they couldn't be applied to the latter. Large cross border mergers are not just a question of joining corporate cultures but company cultures as well. There are different traditions, market characteristics, legal rules and regulations.
Chatterjee et al. 1992 focused on corporate culture and the significance of culture differences between top management teams of merging banks. Culture differences are important to investors and thus have a negative impact on shareholder value.
A study by Ramaswamy, 1997 is an example. He uses a set of ratio indicators for five strategic areas which he defines as market coverage, risk propensity, client mix, operational efficiency and market activity. This study, like most in this area, uses regression analysis and supports the hypothesis that the more strategically similar the banks, the greater the gains from consolidation. Another example is the paper by Lindblom & Von Koch (2002) which examines the motives and gains from large cross border bank mergers by using the ‘balanced scorecard approach'. They identify that there is a growing interest in the banking sector to merge or acquire banks in other countries.


Thanks