Impact of the financial crisis on cross-border mergers and acquisitions and concentration in the global banking industry

The global banking industry has seen dramatic changes in the past 40 years. Most recently, the financial liberalization of emerging markets and the global financial crisis have significantly impacted the market share of banks worldwide. This article investigates the impact of the 2007–2008 financial crisis on cross-border mergers and acquisitions (M&As) in the banking sector and emphasizes the role of emerging-market banks in the postcrisis consolidation trend. Using M&A data and concentration data over the period 2000–2013, our analysis indicates that the financial crisis had a significant impact on worldwide M&As, especially on the direction of the transactions. Emerging-market banks appear to be major acquirers in the postcrisis period, targeting both neighboring countries and developed economies in Europe. We also observe an increase in bank concentration in developed markets most hit by the financial crisis, especially in the United States and the United Kingdom, whereas bank concentration decreased in emerging markets.

Impact of the Financial Crisis on the Performance of European Acquisitions

This study looks at the impact of the recent financial crisis on the short-term performance of European acquisitions. We use institutional theory and transaction cost economic theory to study whether bidders derive lower or higher returns from acquisitions announced after 2008. We investigate shareholders’ stock price reaction to 2245 deals which occurred during 2004–12 across 22 European Union countries. Our results from both univariate and multivariate analysis show that the deals announced in the post-crisis period, corresponding to the period of economic recession, generate higher returns to shareholders as compared to acquisitions announced in the pre-crisis period. We also test the relevance of the Economic and Monetary Union (EMU), that is, the Eurozone, to this value accrual during the recessionary period. We observe that non-EMU transactions obtain significantly higher gains vis-à-vis EMU transactions in the post-crisis years. Overall, announcement returns of European acquisitions have been affected by the financial crisis and the global recession; and companies that target countries with different currency regimes are likely to generate better returns from their acquisitions.

The Crisis in the UK's High Streets: can the evening and night-time economy help?

Changes in retailing over the last half century have had a detrimental effect on the UK’s local high streets. The recession of 2008-2012 exacerbated these trends leading to a high number of vacancies and neglected properties. The impact was sufficiently severe for the term ‘crisis’ to be used in connection with the British high street. In the academic and commercial reports generated by the recognition that the high street needed to adapt to changing circumstances, a view emerged that the leisure component of high street activity would gain in importance. This article reviews the relationship of the evening and nighttime economy to the high street and considers its potential in reinventing the vitality that is normally associated with these mixed-use urban corridors. The article argues that there is hope in the high street offering a different type of experience to the mainstream forms of entertainment that are consolidating in major town and city centres. It concludes by suggesting that for this to be successful, some public support is necessary.

Presidential power and congressional acquiescence in the "war" on terrorism: a new constitutional equilibrium?

US presidents have expanded executive power in times of war and emergency,sometimes aggressively so. This article builds on the application of punctuated equilibria theory by Burnham (1999 and Ackerman (1999). Underpinning this theory is the notion that rapid changes in - or external shocks to - domestic and international society impose new and insistent demands on the state. In so doing, they produce important and decisive moments of institutional mobilization and creativity, disrupt a pre-existing, relatively stable, equilibrium between the Congress and the president, and precipitate decisions or nondecisions by the electorate and political leaders that define the contours for action when the next crisis or external shock occurs. The article suggests that the combination of President George W. Bush's presidentialist doctrine, 9/11 and the 'war' on terror has consolidated a new, constitutional equilibrium. While some members of Congress contest the new order, the Congress collectively has acquiesced in its own marginalization. The article surveys a wide range of executive power assertions and legislative retreats. It argues that power assertions generally draw on precedent: on, for example, a tradition of wartime presidential extraconstitutional leadership extending to presidents, such as John Adams and Abraham Lincoln,as well as to Cold War and post-Cold War presidentialism.

Walter Benjamin and the Inhumanities: Towards a Pedagogical Anti-Nietzscheanism

The following discussion is intended as a critical intervention into recent debates about the “crisis of the humanities,” reading the symptomaticity of crisis in the medical sense of a turning point. It does so from the perspective of the work of Walter Benjamin, whose own transdisciplinary practice of thought has been characterized as a “philosophy directed against philosophy” and a “philosophizing beyond philosophy,” and stands as a model for the kind of intellectual and para-academic activity evoked here. Historically re-situating Benjamin’s famous allegory of the Angel of History from the twentieth-century context of the “crisis of culture” to the contemporary “crisis of education,” it attempts to reconstruct a dialectical understanding of pedagogization within Benjamin’s work, which is used to sketch out the contours of a critically reimagined pedagogy of the Inhumanities.

Long-term performance of mergers and acquisitions in ASEAN countries

The study looks at mergers and acquisitions (M&As) in ASEAN countries and examines the post-M&A performance using data from 2001 to 2012. The industry-adjusted operating performance tends to decline in the 3 years following an M&A. Yet, the results suggest that M&As completed during the financial crisis are more profitable than those implemented before and/or after the crisis. We argue that this is mainly due to the synergies created between the firms’ resources during the crisis which augur well for firms’ economic performance. We find that, during the crisis, certain characteristics of the firms like the relative size of the target, cross-border nature of deals, acquirer's cash reserves and friendly nature of deals are important determinants of long-term post-M&A operating performance. However, for M&As during the crisis, there appears to be no relationship between performance and firms’ characteristics linked to M&A activity such as payment method, industry relatedness and percentage of target's share acquired.