Malaysian Mergers and Acquisitions Analytical Essay

An analysis of mergers and acquisitions as they relate to the banking sector in Malaysia.
# 151598 | 1,947 words | 10 sources | APA | 2012


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Description:

This paper examines how mergers and acquisitions are a part of corporate strategy, corporate finance and management that focus on purchasing, selling and joining of different firms in order to help, finance, or even a fast developing firm in a particular industry maintains steady growth without creation of another business. In particular, it looks at how the banking sector in Malaysia has witnessed a number of mergers and acquisitions and how these mergers and acquisitions lead the institutions to expand their business, product portfolio and organizational values. The paper examines the impact of mergers and acquisition on organization operating performance in relation to the banking sector in Malaysia. It also analyzes the impacts of top 10 commercial banks in Malaysia such as CIMB banks, Maybank, Hong Leong Bank, etc. by using their revenue and market share statistics.

Outline:
Introduction
Effects of Mergers and Acquisitions
Conceptual Framework of Variables
Theoretical Model Review
The Bank's Revenue and Losses after Merging

From the Paper:

"The methods used in the examination of merger outcomes in Malaysian banking sectors include input and output variables. The inputs used in the study of the financial sector include operating and interest expenses. The operating expenses are expenses incurred in the management of a bank's daily operations including personal costs, establishment costs, marketing expenses, and general as well as administrative expenses. Banks' establishment costs are expenses pooled towards payment of premises rents, maintenance as well as repair of expenses as well as depreciation costs. Banks personnel costs are expenses incurred in the regular activities and daily banking duties that include employees' wages and salaries. The operating expenses usually reflect a bank's efficiency in daily management of resources. The variance of the cost of personnel directly affect the operating expenses, which is an indicator of banks efficiency or inefficiency in management and control of operating costs (Bank Negara Malaysia )."

Sample of Sources Used:

  • CIMB Niaga, 2009. Merger Closing Report, Jakarta: PT Bank CIMB Niaga Tbk.
  • Hazlina Abd, K., Muzaffar, H. S., Alias, R. & Azali, M., 2005. An Analysis of Technical Progress and Efficiency in Malaysian Finance Companies. The ICFAI Journal of Industrial Economics, Volume 4, pp. 6-19.
  • Hazlina, A.-K., Selamat, Z. & Idros, M., 2010. Productivity of Malaysian Banks after Mergersand Acquisition. European Journal of Economics, Finance and Administrative Sciences, Issue 24.
  • Hong Leong Bank, 2011. EON Bank Group is now part of Hong Leong Bank Group. [Online] Available at: http://www.hlb.com.my/news/2011/n060511.jsp?flag=052011[Accessed 23 May 2012].
  • Maybank, 2001. Maybank Successfully Completes Systems Integration With Former Pacific Bank. [Online] Available at: http://www.maybank2u.com.my/mbb_info/m2u/public/personalDetail04.do?channelId=Personal&cntTypeId=0&cntKey=AU01.04.01.02&programId=AU02.02-ArchiveNews&newsCatId=/mbb/AU-AboutUs/AU02-Newsroom/2001/04&chCatId=/mbb/Personal[Accessed 23 May 2010].

Cite this Analytical Essay:

APA Format

Malaysian Mergers and Acquisitions (2012, June 30) Retrieved November 17, 2019, from https://www.academon.com/analytical-essay/malaysian-mergers-and-acquisitions-151598/

MLA Format

"Malaysian Mergers and Acquisitions" 30 June 2012. Web. 17 November. 2019. <https://www.academon.com/analytical-essay/malaysian-mergers-and-acquisitions-151598/>

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