An assessment of the realization of merger motivations for the top three most actively merging commercial banks in the Philippines done from 1998 to 2005
Date of Publication
2008
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Management of Financial Institutions
Subject Categories
Finance and Financial Management
College
Ramon V. Del Rosario College of Business
Department/Unit
Financial Management
Thesis Adviser
Rolando Esguerra
Defense Panel Member
Leila Kabigting
Steven Lim
Manrico Masagca
Abstract/Summary
There have been numerous mergers in the financial industry throughout the globe. There has to be a logical reason behind the move of banks to enter into a merger deal which may be qualitative or quantitative.
Quantifiable motivations of activity merging commercial banks in the Philippines were assessed in this study. It is expected that the main motivation of banks in a merger transaction is to create additional shareholders' wealth. This can be achieved by evaluating the bank in terms of their solvency, efficiency, profitability and liquidity. Specific ratios from the CAMELS framework were used to assess whether there was an improvement in the surviving bank two years after the merger. The data gathered were also analyzed using T-tests to evaluate the significance of the change in the ratios pre and post merger and was then compared with the interview or questionnaire results.
It can be concluded that the merger of universal/commercial banks in terms of the key performance indicators have not achieved improvement two years after the merger. It is recommended to have a longer time horizon in further studies of merger deals in the Philippines. Other means and ways of evaluating the realization of the merger motivations of banks are by using firm valuation techniques, historical stock price performance and by focusing on a case-to-case analysis.
Abstract Format
html
Language
English
Format
Accession Number
TU14820
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
ii, 152, [87] leaves : col. ill. ; 28 cm.
Keywords
Banks and banking--Philippines; Bank mergers-- Philippines
Recommended Citation
Lacsina, K., Morales, J. D., & Rigor, J. A. (2008). An assessment of the realization of merger motivations for the top three most actively merging commercial banks in the Philippines done from 1998 to 2005. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/6313
