Browsing by Subject "fuusiot"

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  • Myller, Marko (2007)
    Bank of Finland. Financial market report 3
    The 'swallow or be swallowed' game between stock exchanges continues. The focus of attention has shifted to the Nordic countries, with the OMX Group getting its turn in the global integration of exchanges. This coincides with completion of the merger between parent companies of the London and Milan stock exchanges.
  • Hasan, Iftekhar; Malkamäki, Markku (2000)
    Suomen Pankin keskustelualoitteita; Bank of Finland. Discussion papers 20/2000
    This paper investigates the existence and extent of economies of scale and scope among stock exchanges.Evidence from 38 exchanges in 32 countries and 4 continents around the world for the years 1989-1998 indicates the existence of significant economies of scale and scope.The degree of such economies however differs by size of exchange and region.The largest stock exchanges show an increasing trend of cost effectiveness.Exchanges in North America and Europe report substantially larger economies of scale than those in the Asia-Pacific regions. Keywords: stock exchanges, mergers, regional alliances, economies of scale
  • Francis, Bill; Hasan, Iftekhar; Sun, Xian; Waisman, Maya (2014)
    Bank of Finland Research Discussion Papers 17/2014
    Published in Journal of Corporate Finance, Volume 25, April 2014, Pages 202–215
    In the presence of high uncertainty and limited experience, can observing the actions of other acquiring predecessors help firms make better acquisition decisions? Using a sample of cross-border M&As conducted by US acquirers in developing countries, we document a positive and significant relationship between an acquirer's performance and its predecessors' acquisition activity. This relationship is especially pronounced in the prevalence of news events about the outcome of predecessors' acquisitions, when predecessors consist of US peers from the same industry and/or when targets are based in culturally distant countries. Our findings shed light on one channel through which information spillovers across industries and acquiring firms could be a key driver of value creation in developing market cross-border M&As.
  • Kauko, Karlo (2016)
    Bank of Finland. Bulletin 2/2016
    Nordea Group intends to merge its large subsidiary banks operating in other Nordic countries to the Swedish parent company, which is supervised by the Swedish supervisory authority, Finansinspektionen. The importance of the change for Finland is heightened by Nordea's large market share.
  • Choi, Sungho; Francis, Bill B.; Hasan, Iftekhar (2010)
    Bank of Finland Research Discussion Papers 4/2010
    The impact of cross-border bank M&As on bank risk remains an open question. Though geographically diversifying bank M&As have the potential to reduce the risk of bank insolvency, they also have the potential to increase that risk due to the increase in risk-taking incentives for bank managers and stockholders following these transactions. This paper empirically investigates whether cross-border bank M&As increase or decrease the risk of acquiring banks as captured by changes in acquirers yield spreads. The paper also investigates how differences in the institutional environments between bidder and target countries affect changes in yield spreads following M&A announcements. The study finds that bondholders, in general, perceive cross-border bank M&As as risk-increasing activities, unlike domestic bank mergers. Specifically, on average, yield spreads increase by 4.13 basis points following the announcement of cross-border M&As. This study also finds that these yield spreads are significantly affected by the differences in investor-protection and deposit-insurance environments between the transacting countries. However, the study does not find that the regulatory and supervisory environment in the home countries of the transacting parties significantly affects the changes in yield spreads. The overall evidence suggests that regulators should judge the relative environment in both the home and the host countries in evaluating the associated risks of an active multinational financial institution and in setting the sufficiency of the banks reserve positions.
  • Francis, Bill B.; Hasan, Iftekhar; Sun, Xian (2012)
    Bank of Finland Research Discussion Papers 28/2012
    Using a sample of U.S. mergers and acquisitions, this study evaluates how banking relationships influence acquirers choice of financial advisors. Specifically, it examines: i) acquirers previous relationships with advisors in various financial activities: M&A advisories, equity issuings and lending activities; ii) the optimism of analyst recommendations; and iii) how acquirers past satisfaction with their financial advisors determines the choice of financial advisors. Overall, the findings suggest that the influence of banking relationships on a firm s choice of financial institutions is limited in the area of M&A advisory business. The implications from the traditional relationship banking studies may not be suitable to explain how firms choose advisors, due to the wide variety of practices in investment banking activities. The evidence portrays that firms with M&A experience are more likely to switch financial advisors with poor deal outcomes. Firms without M&A experience, on the other hand, are more likely to choose their underwriters as financial advisors, especially when they provide overly optimistic analyst coverage prior to the transactions.
  • Andersén, Atso; Niskanen, Mikko; Ylä-Outinen, Sami (1999)
    Suomen Pankin keskustelualoitteita 3/1999
    Euroopan sisämarkkinoiden synty, sääntelyn purkaminen ja muu toteutunut kehitys ovat muodostaneet maanosan pankkitoimialalle muutospaineita, joiden purkautumista EMUn kolmannen vaiheen odotetaan nopeuttavan.Keskustelualoitteessa käydään läpi rakennemuutoksen syyt ja arvioidaan sen todennäköistä suuntaa. Lisäksi esitetään arvio Euroopan eri maiden pankkisektorien tämänhetkisestä kannattavuudesta, vakavaraisuudesta ja kustannustehokkuudesta.Kilpailun lisääntyessä euroalueen rahoitusjärjestelmän rakenteen muuttuminen nähdään järjestelmän vakauden kannalta välttämättömäksi.Toisaalta lisääntyvä kilpailu voi johtaa yksittäisissä pankeissa myös liialliseen riskinottoon ja luottotappioiden kasvuun. Asiasanat: rahoitusjärjestelmä, EMU, pankit
  • Francis, Bill B.; Hasan, Iftekhar; Sun, Xian (2006)
    Bank of Finland Research Discussion Papers 24/2006
    Published in Journal of Banking & Finance, Volume 32, Issue 8, August 2008, pp. 1522-1540
    Using theories of internal capital markets, this paper examines the link between financial market integration and the value of global diversification.Based on a sample of 1,491 completed cross-border mergers and acquisitions (M&As) conducted by US acquirers during the 1990-2003 period, we find that, in general, US shareholders gain significant positive abnormal returns following the announcement of the merger/acquisition.Specifically, firms that acquire/merge with targets from countries with financially segmented markets experience significantly higher positive abnormal returns than those that acquire/merge with targets from countries with financially integrated capital markets.We find that the significantly higher positive returns are driven particularly by deals between firms from unrelated industries.These firms with higher announcement returns are also characterized by positive and significant post-merger operating performance.This finding is consistent with our event study results and suggests that the overall improvement in the merged firms' performance is likely due to the influx of internal capital from wholly integrated acquirers to segmented targets, firms that, on average are usually faced with higher capital constraints. Keywords: financial market integration, global diversification, internal capital markets, mergers, acquisitions JEL classification numbers: G15, G31, G34
  • (1999)
    Bank of Finland. Bulletin 73 ; 2
  • Hasan, Iftekhar; Schmiedel, Heiko; Song, Liang (2010)
    Bank of Finland Research Discussion Papers 2/2010
    Published in Financial Review, Volume 47, Issue 3, August 2012: 469-499
    In recent years, demutualized stock exchanges have increasingly engaged in M&A and alliance activities. To shed light on this topic, we investigate short-run share price responses to the formation of 110 stock exchange M&As and alliances in the period 2000 2008. Our ?ndings show that the average stock-price responses to a stock-exchange M&A or alliance is positive. Stock exchange M&As create more value than alliances. For alliances, joint ventures generate more value than non-equity alliances. More value is created when the integration is horizontal and cross-border than when it is vertical and domestic. Evidence is also found for learning-by-doing effects in stock exchange integration activities. Finally, we find that the better the shareholder protection, accounting standards and degree of capital market development in the partnering exchange s country, the higher the merger and alliance premium. These patterns also obtain when we examine long-run performance measures such as the three-year buy-and-hold abnormal return, change in ROA (ROE), change in liquidity, and change in market capitalization of IPO between years t-2 and t+2.
  • Francis, Bill B.; Hasan, Iftekhar; Sun, Xian (2012)
    Bank of Finland Research Discussion Papers 31/2012
    Published in International Review of Financial Analysis, Volume 32, March 2014, Pages 143-158
    This paper examines the determinants of the choice of financial advisors and their impact on the announcement effects of US acquirers in cross-border M&As. Two hypotheses are tested: one pertains to the acquiring firms' home preference in selecting financial advisors, and the other relates to advisors' experience in target countries. Evidence supports the home preference hypothesis in the selection of advisors in cross-border M&As, particularly in all-cash paid transactions where acquirers take the entire risk of not realizing the expected synergy value. We also observe home preference among investors as acquirers that picked US advisors experience significantly higher positive abnormal returns in all-cash paid transactions than those without US advisors, even when the chosen US advisors do not have significant experience in the target country. Finally, home preference at the choice of financial advisor may be costly if US acquirers pass by more experienced because of home preference.
  • Molnár, József (2008)
    Bank of Finland Research Discussion Papers 4/2008
    This paper tests market power in the banking industry. Price-cost margins predicted by different oligopoly models are calculated using discrete-choice demand estimates of own-price and cross-price elasticities. These predicted price-cost margins are then compared with price-cost margins computed using observed interest rates and estimates of marginal costs. This paper This among the first to. apply this methodology on a detailed, bank-level dataset from the retail banking sector. It extends on previous papers and illustrates the advantages of structural modelling by simulating a counterfactual merger experiment with a number of mergers, each of which involves two major banks, and studying the unilateral effect of the mergers on interest rates. This provides more evidence that concentration measures (such as the Herfindahl index) could be very misleading indicators of market power. Keywords: demand, discrete choice, product differentiation, banking, market power, merger simulation JEL classification numbers: G21, L11, L13
  • Kauko, Karlo (2016)
    Euro & talous 2/2016
    Nordea-konserni on fuusioimassa muissa Pohjoismaissa toimivia suuria tytäryhtiöpankkejaan ruotsalaiseen emoyhtiöön, jota valvoo Ruotsin valvontaviranomainen. Suomessa muutoksen merkitystä lisää Nordean suuri markkinaosuus.
  • Aaltonen, Markus (2017)
    Euro & talous. Blogi
    Suomen pankkisektorin taseen rakenteessa on tapahtunut merkittävä muutos, jota voidaan nyt ensimmäistä kertaa havainnollistaa myös tilastojen valossa.
  • Vauhkonen, Jukka (2004)
    Suomen Pankki. Rahoitusmarkkinaraportti 4
    JPMorgan Chase ja Bank One fuusioituivat. Mitsubishi Tokyo Financial Group ja UFJ ilmoittivat aikeistaan fuusioitua vuonna 2005. Banco Santander Central Hispano osti Abbey Nationalin. Euroopassa pankkien fuusiot ja yritysostot ovat kuitenkin kaikkiaan vähentyneet huippuvuosista 1998-2000.
  • Molnár, József (2007)
    Bank of Finland Research Discussion Papers 17/2007
    This paper proposes and tests an explanation as to why rational managers seeking to maximize shareholder value can pursue value-decreasing mergers. It can be optimal to overpay for a target firm and decrease shareholder value if the loss is less than in an alternative where the merger is undertaken by a product market rival. This paper presents a model based on synergies, market power and competition for merger targets. Consistent with the model the empirical results obtained here show a strong correlation between the returns of acquiring firms and close rivals around merger events. Keywords: acquisitions, auction, event study, oligopoly, preemption JEL classification numbers: G34, G14, D43, D44, L13
  • Hasan, Iftekhar; Khalil, Fahad; Sun, Xian (2017)
    Bank of Finland Research Discussion Papers 17/2017
    We investigate the impacts of improved intellectual property rights (IPR) protection on cross-border M&A performance. Using multiple measures of IPR protection and based on generalized difference-in-differences estimates, we find that countries with better IPR protection attract significantly more hi-tech cross-border M&A activity, particularly in developing economies. Moreover, acquirers pay higher premiums for companies in countries with better IPR protection, and there is a significantly higher acquirer announcement effect associated with these hi-tech transactions.
  • Hasan, Iftekhar; Khalil, Fahad; Sun, Xian (2017)
    Quarterly Journal of Finance 3
    BoF DP 17/2017
    We investigate the impacts of improved intellectual property rights (IPR) protection on cross-border M&A performance. Using multiple measures of IPR protection and based on generalized difference-in-differences estimates, we find that countries with better IPR protection attract significantly more hi-tech cross-border M&A activity, particularly in developing economies. Moreover, acquirers pay higher premiums for companies in countries with better IPR protection, and there is a significantly higher acquirer announcement effect associated with these hi-tech transactions.
  • Chahine, Salim; Hasan, Iftekhar; Mazboudi, Mohamad (Wiley, 2018)
    International Journal of Auditing 3
    Using a sample of 664 merger and acquisition (M&A) transactions and office‐level audit data, this study investigates the role of auditors in M&A completion time. We find that having a common auditor for both acquirer and target firms in M&A transactions increases the completion time of such transactions because the exposure to higher litigation and reputational costs outweighs the information‐access advantage of common auditors. However, auditors' past experience in M&A transactions helps reduce completion time and costs. These results are robust to having Big N auditors at both ends as well as to various acquirer, target, and deal characteristics.
  • Myller, Marko (2007)
    Suomen Pankki. Rahoitusmarkkinaraportti 3
    Pörssien piirileikki teeman osta tai tule ostetuksi ympärillä jatkuu. Huomion keskipiste on tällä kertaa siirtynyt Pohjois-maiden suuntaan, kun OMX-ryhmä on vuorostaan päässyt estradille pörssien globaalissa integraatio-kehityksessä. Samaan aikaan Lontoon ja Milanon pörssien emo-yhtiöt yhdistyivät.