The Impact of Mergers and Acquisitions in the Banking and Insurance Sector
The Impact of
Mergers and Acquisitions in the
Banking and Insurance Sector
Table of Contents
Executive summary 2 The impact of M&As on employees, staff representatives and their unions 2 The impact of M&As on consumers 3 The impact of M&As on shareholders 5
The impact of mergers and acquisitions on employees in the financial services sector (Tina Weber) 6 Introduction 6 Trends in employment in the financial services sector 6 Table 1: Employment in Financial Services, EU, 1992 and 1998 7 Trends in the nature and quality of employment in the financial services sector 8 The nature of restructuring in the financial services sector 9 The impact of restructuring and mergers on working conditions and the industrial relations climate 10 The role of employee representation in mergers and restructuring 11
Recommendations 13
Financial services mergers and acquisitions:
Consumer impacts (Andrew Leyshon) 15 Introduction 15 Service provision in retail financial services 16 Impact on smaller and larger consumers 18 Reactions by consumers to mergers 20 Conclusions 21 References 21
The performance of banking mergers: Propositions and policy implications (Hans Schenk) 24 Abstract 24 Introduction 24 Methodology 25 The empirical evidence: event studies 27 Table 1: Assessment of the 50 largest bank mergers, 1990-1999 28 Figure 1: CAR (%) of 87 foreign acquisitions by large Dutch firms, 1990-1995 30 The empirical evidence: ex-post studies 31 Table 2: Selected banks ranked by asset size, 1999 36 Figure 2: Typical long-range average cost curve 37 Purely strategic (bank) mergers: a bit of theory 37 Effects of purely strategic (bank) mergers and some policy suggestions 39 Conclusions 41 References 42
The Impact of Mergers and Acquisitions in the
Banking and Insurance Sector
Executive Summary
In
Mergers and Acquisitions in the
Banking and Insurance Sector
Table of Contents
Executive summary 2 The impact of M&As on employees, staff representatives and their unions 2 The impact of M&As on consumers 3 The impact of M&As on shareholders 5
The impact of mergers and acquisitions on employees in the financial services sector (Tina Weber) 6 Introduction 6 Trends in employment in the financial services sector 6 Table 1: Employment in Financial Services, EU, 1992 and 1998 7 Trends in the nature and quality of employment in the financial services sector 8 The nature of restructuring in the financial services sector 9 The impact of restructuring and mergers on working conditions and the industrial relations climate 10 The role of employee representation in mergers and restructuring 11
Recommendations 13
Financial services mergers and acquisitions:
Consumer impacts (Andrew Leyshon) 15 Introduction 15 Service provision in retail financial services 16 Impact on smaller and larger consumers 18 Reactions by consumers to mergers 20 Conclusions 21 References 21
The performance of banking mergers: Propositions and policy implications (Hans Schenk) 24 Abstract 24 Introduction 24 Methodology 25 The empirical evidence: event studies 27 Table 1: Assessment of the 50 largest bank mergers, 1990-1999 28 Figure 1: CAR (%) of 87 foreign acquisitions by large Dutch firms, 1990-1995 30 The empirical evidence: ex-post studies 31 Table 2: Selected banks ranked by asset size, 1999 36 Figure 2: Typical long-range average cost curve 37 Purely strategic (bank) mergers: a bit of theory 37 Effects of purely strategic (bank) mergers and some policy suggestions 39 Conclusions 41 References 42
The Impact of Mergers and Acquisitions in the
Banking and Insurance Sector
Executive Summary
In
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