Revisiting the Merger and Acquisition Performance of European Banks

The study examines the value creation of Merger and Acquisition (M&A) deals in European Banking from 1990-2004. This is performed, first, by examining the stock price reaction of banks to the announcement of M&A deals and, second, by analysing the determinants of this reaction. The findings provide evidence of value creation in European banks as the shareholders of the targets have benefited from positive and (statistically) significant abnormal returns while those of the acquirers earn small negative but non-significant abnormal returns. In the case of the shareholders of the acquirers, domestic M&As and especially those between banks with shares listed on the stock market, seem to be more beneficial compared to cross-border ones or those when the target is unlisted. Shareholders of the targets earn in all cases positive abnormal returns. Finally, although the link between abnormal returns and fundamental characteristics of the banks is rather weak, it appears that the acquisition of smaller, less efficient banks generating more diversified income are more value creating, while acquisition of less efficient, liquid and characterised by higher credit risk banks is not a value creating option.Bank mergers; mergers and acquisitions; abnormal returns

Optimal progressive taxation in a model with endogenous skill supply

No abstract available

Revisiting the merger and acquisition performance of European banks

The study examines the value creation of Merger and Acquisition (M&A) deals in European Banking from 1990-2004. This is performed, first, by examining the stock price reaction of banks to the announcement of M&A deals and, second, by analysing the determinants of this reaction. The findings provide evidence of value creation in European banks as the shareholders of the targets have benefited from positive and (statistically) significant abnormal returns while those of the acquirers earn small negative but non-significant abnormal returns. In the case of the shareholders of the acquirers, domestic M&As and especially those between banks with shares listed on the stock market, seem to be more beneficial compared to cross-border ones or those when the target is unlisted. Shareholders of the targets earn in all cases positive abnormal returns. Finally, although the link between abnormal returns and fundamental characteristics of the banks is rather weak, it appears that the acquisition of smaller, less efficient banks generating more diversified income are more value creating, while acquisition of less efficient, liquid and characterised by higher credit risk banks is not a value creating option.Bank mergers; mergers and acquisitions; abnormal returns;

Cash holdings of listed and unlisted firms::New evidence from the euro area

This paper examines the cash holdings behavior of listed and unlisted firms. We argue that unlisted firms, which are smaller, face a greater wedge between the cost of external and internal finance and as a result they need to rely more on the later. Relying on internal funds means that firms have a precautionary motive to hold cash. We test our theory using an unbalanced panel of mainly small medium enterprises within the euro area over the period 2003–2017 paying special attention to the role of financial pressure, financial constraints and the recent financial crisis. Our findings reveal that unlisted firms hold more cash than their listed counterparts due to precautionary motives. In addition, when considering the effect of financial pressure, the results show that the difference in cash holdings between listed and unlisted firms exhibit a ‘U-shaped’ relationship. Finally, unlisted firms have a higher sensitivity to save cash out of cash flow than listed firms. Our results are robust to using different specifications and different financial pressure measures

Dividend smoothing and credit rating changes

This paper examines the impact of credit rating changes on firms' dividend smoothing behavior, considering for the first time the"big three" credit rating agencies (Standard and Poor's, Fitch and Moody's). Using a hand collected sample of credit rating changes for firms listed at the S&P500 that are involved in dividend payments, we implement the traditional Lintner's (1956) model and we initially verify the fact that firms smooth their dividend payments. Then we consider the effect of credit rating changes on smoothing behavior and we show the presence of an asymmetric impact on credit rating changes to dividend smoothing behavior. In particular, on average, a credit rating downgrade among any of the three credit rating agencies forces firms to engage in less smoothing, whereas a credit rating upgrade has only a marginal positive effect on dividend smoothing. Finally, our key results remain valid for firms with high level of financial pressure and under various robustness checks

Fiscal policy with banks and financial frictions

We assess the role of banks to the transmission of optimal and exogenous changes in fiscal policy to the economy. We built-up a dynamic stochastic general equilibrium model with patient and impatient agents, banks and a government to find that banks and their associated capital-adequacy constraint mitigate the negative spill-over e§ects to the economy from higher taxes. Specifically, we confirm that labour income tax is the most distortionary fiscal instrument. The optimal choice of a housing tax is the most favorable funding source to a temporary increase in public spending. The combination of housing and labour taxes is the most preferred tax bundle to be optimally chosen under negative output shocks. Moreover, a permanent increase in housing tax is beneficial if it is welfare enhancing and the existence of banks benefits mainly impatient households under permanently higher consumption taxes. Finally, these results remain robust to various robustness checks

Motivation and User Engagement in Fitness Tracking: Heuristics for Mobile Healthcare Wearables

Wearable fitness trackers have gained a new level of popularity due to their ambient data gathering and analysis. This has signalled a trend toward self-efficacy and increased motivation among users of these devices. For consumers looking to improve their health, fitness trackers offer a way to more readily gain motivation via the personal data-based insights the devices offer. However, the user experience (UX) that accompanies wearables is critical to helping users interpret, understand, gain motivation and act on their data. Despite this, there is little evidence as to specific aspects of fitness tracker user engagement and long-term motivation. We report on a 4-week situated diary study and Healthcare Technology Self-efficacy (HTSE) questionnaire assessment of 34 users of two popular American fitness trackers: JawBone and FitBit. The study results illustrate design implications and requirements for fitness trackers and other self-efficacy mobile healthcare applications.We would like to thank all users who participated in this research as well as Experience Dynamics, Inc. for providing the necessary resources and coordinating the user diary study. This study has been supported by financial aid from the Spanish Ministry of Economy and Competitiveness under the project ECO2012-36160; Spanish Ministry of Economy, Industry and Competitiveness (MINECO) and the Fondo Europeo de Desarollo Regional (FEDER) under the project ECO2015-67296-R and, Communidad de Madrid and Fondo Social Europeo under the project INNCOMCON-CM S2015/HUM-3417

The determinants for the survival of firms in the Athens Exchange

This study examines the survival of firms in the Athens Exchange for the period 1993-2006, by applying a number of alternative parametric and non-parametric models. A company is considered not to survive, if its shares have been either under supervision or their trading is suspended for over six months. According to the results, firms characterised by a high degree of debt or by small size or firms that are active in sectors in which new competitors can penetrate easily, run higher risks of non-survival. By contrast, factors such as the corporate governance and the business cycle do not seem to offer a plausible explanation for the probability of non-survival. In addition, it appears that the risk of non-survival is increasing during the first years of a firm's listing in the stock exchange, peaking after approximately 7 years and then decreasing; this suggests that investments in stocks should have a long-term focus.survival models; company delisting

Cash holdings of listed and unlisted firms : new evidence from the euro area

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‘It’s all on me’: Exploring Experiences of Parents with Hearing-Impaired Children in the NDIS and Impact on Family Wellbeing

This item is only available electronically.Parents of hearing-impaired children face unique experiences and challenges, including emotional responses to diagnosis, adapting to their child’s needs, and overall changed life circumstances. They face complex decisions surrounding hearing devices, communication, and education. Additionally, such parents in Australia have been confronted with another prominent challenge, navigating the National Disability Insurance Scheme (NDIS). The scheme is in its infancy, with numerous issues reported. Therefore, ongoing research into NDIS experiences is warranted. No research to date has explored the impact of the NDIS on the wellbeing of families with hearing-impaired children, a noteworthy endeavour for future research.Thesis (M.Psych(Health)) -- University of Adelaide, School of Psychology, 201