Financial Synergy On Mergers And Acquisition Of Commercial Banks
Volume 3 - Issue 4, April 2019 Edition
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Author(s)
Dr. Shirley Eje Maranan, Shaira Marie D. Reyes, Angelica G. Amar, Clarck D. Balaguer, Shannon Arielle F. Medina
Keywords
commercial banks, financial stability, profitability, synergy
Abstract
The study focused on the financial synergy on mergers and acquisition of commercial banks in CALABARZON, Philippines. Descriptive method using questionnaire was treated with frequency and percentage, weighted mean, t – test and Pearson’s r correlation. Based on the study, commercial banks were above 21 years, 100–199 employees, more than Php10, 001, 000.00 capital, engaged in horizontal merger, and acquired financing decision. Respondents assessed that profitability, leverage, and liquidity were financially synergized to a moderate extent. Moreover, respondents have fairly serious problems and a characteristic of commercial banks is not significantly different to the factors of financial synergy. Thus, lessen risk, maximization of shareholders’ return, increase dynamic buyouts, invest and maintain advances in technology, focus on affiliate companies and analysis of inflation and foreign exchange were proposed strategies on financial synergy. In connection, commercial banks should promote quality of services and innovation, avail the ability of maximizing their assets, and valuate/assess plan comprehensively.
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