Impact Of Mergers & Acquisitions On The Operational Performance And Stability Of Islamic And Conventional Banks

Mergers and acquisitions (M&As) are an alternative way for business expansion and brings benefits for expansion of the market, generation and exploitation economies of scale and scope, gain of market power, proper diversification of products and services and overall improved performance. This st...

Full description

Saved in:

Bibliographic Details
Main Author:	Nazim Ullah
Format:	Thesis
Language:	en_US
Subjects:	Consolidation and merger of corporations Banks and banking Islamic banks
Online Access:	https://oarep.usim.edu.my/bitstreams/ea7961ea-5f57-4353-b010-f2800ad49fb7/download https://oarep.usim.edu.my/bitstreams/8dbeba08-dc82-4d6d-843a-6a7fc7b0263e/download https://oarep.usim.edu.my/bitstreams/0dd4131f-03bf-48c0-9c20-ab8c7d3e8c72/download https://oarep.usim.edu.my/bitstreams/8b9c68c6-af5d-48a6-87a9-11ba1bf02efa/download https://oarep.usim.edu.my/bitstreams/0038c79a-87fd-4d8e-8452-d09c29b0668e/download https://oarep.usim.edu.my/bitstreams/2c85fc00-99a6-4155-8086-2a6d17d62268/download https://oarep.usim.edu.my/bitstreams/5390ecea-ca71-4382-9ad0-c4bd3fdad263/download https://oarep.usim.edu.my/bitstreams/a68059f9-32c4-4e5b-9fb7-326d59f7cc3b/download https://oarep.usim.edu.my/bitstreams/a8ce02d0-21a7-4db1-bb09-ed08faec81f4/download https://oarep.usim.edu.my/bitstreams/b16c57f8-c285-43a9-b108-39081a19a9d6/download
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-usim-ddms-13087
record_format	uketd_dc
institution	Universiti Sains Islam Malaysia
collection	USIM Institutional Repository
language	en_US
topic	Consolidation and merger of corporations Banks and banking Islamic banks
spellingShingle	Consolidation and merger of corporations Banks and banking Islamic banks Nazim Ullah Impact Of Mergers & Acquisitions On The Operational Performance And Stability Of Islamic And Conventional Banks
description	Mergers and acquisitions (M&As) are an alternative way for business expansion and brings benefits for expansion of the market, generation and exploitation economies of scale and scope, gain of market power, proper diversification of products and services and overall improved performance. This study examines the impact of M&As (five years before and five years after) on operational performance and stability for Islamic and conventional banks by taking into consideration the mediating role of market structure. It employs panel data techniques and structural equation modeling (SEM). The study analyses a set of samples consisting of 10 Islamic banks and 14 conventional banks involved in M&As for the period of 2004Q1 to 2020Q4 from six countries which are Qatar, Kuwait, Bahrain, Saudi Arabia, United Arab Emirates, and Pakistan. The Dependent variables: operational performance is estimated using return on assets (ROA), return on equity (ROE) and net interest margin (NIM) while Z-score is used to measure bank stability. Several factors namely bank size, level of bank sizes, intermediary roles (financial and non-financial) and modes of financing are used as independent variables. Moreover, bank specific and macroeconomic variables are used as a control variable. Bank size and the level of bank sizes (i.e., small, medium, and large) are estimated using total assets, total deposits, and operating income. Mediating variables namely Herfindahl-Hirschman Index (HHI) and concentration ratio are used as a proxy for the market structure of the country. The findings imply that the implementation of M&As improves operational performance of Islamic and conventional banks while stability does not show any differences in pre and post M&As. Market structure mediates the relationship of post M&As with operational performance and stability of both types of banks. Moreover, small sized banks imply better impact on the operational performance while large and medium sized banks show better impact on stability of banks. Furthermore, in the pre-M&As scenario, there is no difference between operational performance of Islamic and conventional banks since the sign of the coefficient is the same. In contrary the post M&As scenario, it shows differences between Islamic and conventional banks. Meanwhile, there is no difference of stability in pre and post M&As of Islamic and conventional banks. The implication of the study is twofold. Firstly, M&As have more potential for Islamic banks than conventional banks. Secondly, they should take into consideration the market structure since it mediates the relationship between M&As and operational performance and stability of both types of banks.
format	Thesis
author	Nazim Ullah
author_facet	Nazim Ullah
author_sort	Nazim Ullah
title	Impact Of Mergers & Acquisitions On The Operational Performance And Stability Of Islamic And Conventional Banks
title_short	Impact Of Mergers & Acquisitions On The Operational Performance And Stability Of Islamic And Conventional Banks
title_full	Impact Of Mergers & Acquisitions On The Operational Performance And Stability Of Islamic And Conventional Banks
title_fullStr	Impact Of Mergers & Acquisitions On The Operational Performance And Stability Of Islamic And Conventional Banks
title_full_unstemmed	Impact Of Mergers & Acquisitions On The Operational Performance And Stability Of Islamic And Conventional Banks
title_sort	impact of mergers & acquisitions on the operational performance and stability of islamic and conventional banks
granting_institution	Universiti Sains Islam Malaysia
url	https://oarep.usim.edu.my/bitstreams/ea7961ea-5f57-4353-b010-f2800ad49fb7/download https://oarep.usim.edu.my/bitstreams/8dbeba08-dc82-4d6d-843a-6a7fc7b0263e/download https://oarep.usim.edu.my/bitstreams/0dd4131f-03bf-48c0-9c20-ab8c7d3e8c72/download https://oarep.usim.edu.my/bitstreams/8b9c68c6-af5d-48a6-87a9-11ba1bf02efa/download https://oarep.usim.edu.my/bitstreams/0038c79a-87fd-4d8e-8452-d09c29b0668e/download https://oarep.usim.edu.my/bitstreams/2c85fc00-99a6-4155-8086-2a6d17d62268/download https://oarep.usim.edu.my/bitstreams/5390ecea-ca71-4382-9ad0-c4bd3fdad263/download https://oarep.usim.edu.my/bitstreams/a68059f9-32c4-4e5b-9fb7-326d59f7cc3b/download https://oarep.usim.edu.my/bitstreams/a8ce02d0-21a7-4db1-bb09-ed08faec81f4/download https://oarep.usim.edu.my/bitstreams/b16c57f8-c285-43a9-b108-39081a19a9d6/download
_version_	1812444819019005952
spelling	my-usim-ddms-130872024-05-29T19:31:14Z Impact Of Mergers & Acquisitions On The Operational Performance And Stability Of Islamic And Conventional Banks Nazim Ullah Mergers and acquisitions (M&As) are an alternative way for business expansion and brings benefits for expansion of the market, generation and exploitation economies of scale and scope, gain of market power, proper diversification of products and services and overall improved performance. This study examines the impact of M&As (five years before and five years after) on operational performance and stability for Islamic and conventional banks by taking into consideration the mediating role of market structure. It employs panel data techniques and structural equation modeling (SEM). The study analyses a set of samples consisting of 10 Islamic banks and 14 conventional banks involved in M&As for the period of 2004Q1 to 2020Q4 from six countries which are Qatar, Kuwait, Bahrain, Saudi Arabia, United Arab Emirates, and Pakistan. The Dependent variables: operational performance is estimated using return on assets (ROA), return on equity (ROE) and net interest margin (NIM) while Z-score is used to measure bank stability. Several factors namely bank size, level of bank sizes, intermediary roles (financial and non-financial) and modes of financing are used as independent variables. Moreover, bank specific and macroeconomic variables are used as a control variable. Bank size and the level of bank sizes (i.e., small, medium, and large) are estimated using total assets, total deposits, and operating income. Mediating variables namely Herfindahl-Hirschman Index (HHI) and concentration ratio are used as a proxy for the market structure of the country. The findings imply that the implementation of M&As improves operational performance of Islamic and conventional banks while stability does not show any differences in pre and post M&As. Market structure mediates the relationship of post M&As with operational performance and stability of both types of banks. Moreover, small sized banks imply better impact on the operational performance while large and medium sized banks show better impact on stability of banks. Furthermore, in the pre-M&As scenario, there is no difference between operational performance of Islamic and conventional banks since the sign of the coefficient is the same. In contrary the post M&As scenario, it shows differences between Islamic and conventional banks. Meanwhile, there is no difference of stability in pre and post M&As of Islamic and conventional banks. The implication of the study is twofold. Firstly, M&As have more potential for Islamic banks than conventional banks. Secondly, they should take into consideration the market structure since it mediates the relationship between M&As and operational performance and stability of both types of banks. Universiti Sains Islam Malaysia 2022-10 Thesis en_US https://oarep.usim.edu.my/handle/123456789/13087 https://oarep.usim.edu.my/bitstreams/7d3a44d2-fd04-4411-a7a9-5d8a5ba18a20/download 8a4605be74aa9ea9d79846c1fba20a33 https://oarep.usim.edu.my/bitstreams/ea7961ea-5f57-4353-b010-f2800ad49fb7/download 13a0d62f7fbdaaa1f1b215f37bde48e8 https://oarep.usim.edu.my/bitstreams/8dbeba08-dc82-4d6d-843a-6a7fc7b0263e/download 1874bcb4c1a9b7f3871f1e5774e311a6 https://oarep.usim.edu.my/bitstreams/0dd4131f-03bf-48c0-9c20-ab8c7d3e8c72/download eb77543f0404495e1b650176ef0b8252 https://oarep.usim.edu.my/bitstreams/8b9c68c6-af5d-48a6-87a9-11ba1bf02efa/download 4c16027951b4783b66c21513747ffc9f https://oarep.usim.edu.my/bitstreams/0038c79a-87fd-4d8e-8452-d09c29b0668e/download ce762b6cdebe3cdef59dfd74bfdf8326 https://oarep.usim.edu.my/bitstreams/2c85fc00-99a6-4155-8086-2a6d17d62268/download c251e8ccd31590284fe2fff667eb1a06 https://oarep.usim.edu.my/bitstreams/5390ecea-ca71-4382-9ad0-c4bd3fdad263/download 64accfb50acb7c425f4d4072810fa8ab https://oarep.usim.edu.my/bitstreams/a68059f9-32c4-4e5b-9fb7-326d59f7cc3b/download 33a06e1637d5c397a751740495f0716e https://oarep.usim.edu.my/bitstreams/a8ce02d0-21a7-4db1-bb09-ed08faec81f4/download 07bab30e2181718442140c42c8bfd793 https://oarep.usim.edu.my/bitstreams/b16c57f8-c285-43a9-b108-39081a19a9d6/download 6edd80044a79a8fa28e244cf5acc9791 https://oarep.usim.edu.my/bitstreams/112bf903-49d3-4369-a501-acd4b9360fb7/download 68b329da9893e34099c7d8ad5cb9c940 https://oarep.usim.edu.my/bitstreams/e5ff3f5e-a5f4-4c5e-ab2d-cadfc7d7c66d/download cb6c451186ba9524776c57c45326387f https://oarep.usim.edu.my/bitstreams/9ee6120d-3b23-487c-9a31-28d9c13a4208/download 05a026d221d188e793d6d26078f4dc48 https://oarep.usim.edu.my/bitstreams/c046f269-a753-4f16-9a52-e2a735d873a6/download 650b50c46bdd4faca75f013117c37d8f https://oarep.usim.edu.my/bitstreams/fe49320d-60d1-4506-9dc7-98c983ac8cb4/download 77e9d789787f7bab514cd8e2d73f5dc6 https://oarep.usim.edu.my/bitstreams/7e977d98-8256-4b9d-b285-15492affbd48/download 4f0207cd6e8a4fd05ac0aaf1934cca6a https://oarep.usim.edu.my/bitstreams/bb0120e7-553c-42d6-b7ec-8f842d11ba26/download 9d76efdea4aee3a746454f53f227e54e https://oarep.usim.edu.my/bitstreams/d84f3995-d59d-41be-ade8-398545499641/download 4557cbfb0650ba04c05389012fe2ac00 https://oarep.usim.edu.my/bitstreams/c761556d-bfea-4866-996f-76f4bd42542b/download ccba24478db6dce5c8521bb4aee60277 https://oarep.usim.edu.my/bitstreams/84522e84-9501-4c3d-8a05-16b176775544/download 4431195940900678a52ffb0b492fdbab Consolidation and merger of corporations Banks and banking Islamic banks

Impact Of Mergers & Acquisitions On The Operational Performance And Stability Of Islamic And Conventional Banks

Similar Items