China’s Banking Overseas Acquisition: Long-Term Performance and Causes

DOI

10.2991/asshm-13.2013.109How to use a DOI?

Keywords

China’s banking Overseas acquisition Long-term performance

Abstract

One goal of this study is to investigate the long-term performance of CMB acquisi-tion of WLB. The results reveal that its post- merger BHAR is negative and its profitability also decreases, although its post- performance shows an upward trend. The other goal of the research is the causes for its efficiency loss. Based on the analysis of net interest margin, cost to income ratio and the core capital adequacy, the study found that the main reason is that the high premium acquisition lowered CMB’s core capital adequacy ratio, and thus restricts its growth of net interest income.

Copyright

© 2013, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Yuhua Zhao
PY  - 2013/12
DA  - 2013/12
TI  - China’s Banking Overseas Acquisition: Long-Term Performance and Causes
BT  - Proceedings of the 2013 International Conference on Advances in Social Science, Humanities, and Management
PB  - Atlantis Press
SP  - 581
EP  - 586
SN  - 1951-6851
UR  - https://doi.org/10.2991/asshm-13.2013.109
DO  - 10.2991/asshm-13.2013.109
ID  - Zhao2013/12
ER  -