Case Report
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Year 2023, Volume: 5 Issue: 1, 1 - 21, 30.06.2023
https://doi.org/10.53569/apjhls.1284779

Abstract

References

  • Abbas, Q., Hunjra, A. I., Azam, R. I., Ijaz, M. S., & Zahid, M. (2014). Financial performance of banks in Pakistan after Merger and Acquisition. Journal of Global Entrepreneurship Research, 4(13), 1-15.
  • Abbas, Q., Hunjra, A., Saeed, R. Ehsan U. & Ijaz, M. (2015). Analysis of Pre and Post Merger and Acquisition Financial Performance of Banks in Pakistan. Information Management and Business Review, 6(4), 177-190.
  • Abdou, H., Agbeyo, B., Jones, K., & Sorour, K. (2016). The impact of M&A on the Nigerian financial market: A pre-post analysis. Investment Management and Financial Innovation, 13(1), 138-150.
  • Abubakar, J., AlQashouti, B., Aysan, A., & Unal, I. M. (2022). Is Islamic Finance A Panacea for Global Economic Disruptions after COVID-19 Outbreak?. Available at SSRN 4085941.
  • Abusharba, M. T., Triyuwono, I., Ismail, M., & Rahman, A. F. (2013). Determinants of capital adequacy ratio (CAR) in Indonesian Islamic commercial banks. Global review of accounting and finance, 4(1), 159-170.
  • Akinroluyo, B. I. (2022). Capital Adequacy And Deposit Money Bank's Return On Asset (Roa) In Nigeria. Finance & Accounting Research Journal, 4(1), 1-13.
  • Akpan, M. N. U., Aik, N. C., Wanke, P. F., & Chau, W. H. (2018). Exploring the long-term trade-off between efficiency and value creation in horizontal M&As: Evidence from Nigeria. African Journal of Economic and Management Studies, 9(2), 130-147.
  • Amel, D., Barnes, C., Panetta, F. & Salleo, C. (2004). Consolidation & efficiency in the financial sector: A review of the international evidence. Journal of Banking & Finance, 3, 2493- 2519.
  • Andhani, D. (2019). Pengaruh Debt To Total Asset Ratio (DAR) dan Debt To Equity Ratio (DER) Terhadap Net Profit Margin (NPM) Serta dampaknya terhadap Harga Saham pada Perusahaan Elektronik di Bursa Efek Tokyo tahun 2007-2016. Jurnal SEKURITAS (Saham, Ekonomi, Keuangan Dan Investasi), 3(1), 45.
  • Austein, R., & Wijnen, B. (2005). Structure of the IETF Administrative Support Activity (IASA) (No. rfc4071). Aysan, Ahmet Faruk and Unal, Ibrahim Musa (2021): A Bibliometric Analysis of Fintech and Blockchain in Islamic Finance. Forthcoming in: Efil Journal of Economic Research , Vol. 4, No. 15 (1 September 2021).
  • Aysan, A. F., Belatik, A., Unal, I. M., & Ettaai, R. (2022). Fintech strategies of Islamic banks: a global empirical analysis. FinTech, 1(2), 206-215.
  • Aysan, A. F., & Unal, I. M. (2023). Challenges in Islamic Fintech and Digitalization: An Extensive Literature Review. World Scientific Annual Review of Islamic Finance, 1-12.
  • Awan, A. G., & Mahmood, U. B. (2015). Impact of mergers and acquisitions on the performance of commercial banks in Pakistan. Journal of Poverty, Investment and Development, 16, 48-56.
  • Badreldin, A. & Kalhoefer, C. (2009). The effect of mergers and acquisitions on bank performance in Egypt. Journal of Management Technology, 25, 1-15.
  • Berger, A. N. & DeYoung, L. (1997). Problem loans and cost efficiency in commercial banks. Journal of Banking and Finance, 21, 849-870.
  • Bindabel, W., Patel, A., & Yekini, C. O. (2017). The challenges faced by integrating Islamic corporate governance in companies of Gulf countries with non-Islamic companies across border through merger and acquisition. SSRN, September 2017.
  • Calomiris, C., & Karceski, J. (2000). Is the bank merger wave of the 1990s efficient? Lessons from nine case studies. In S. N. Kaplan (Ed.), Mergers and productivity (pp. 93-178). Chicago, USA: University of Chicago Press.
  • Caprion, L. (1999). The long-term performance of horizontal acquisitions: INSEAD Work Paper, 99/24/SM, April.
  • Cornett, M. M., McNutt, J. J. & Tehranian, H. (2006). Performance changes around bank mergers: Revenue enhancements versus cost reductions. Journal of Money, Credit and Banking, 38(4), 1013-1050.
  • De Nicoló, M. G., Zephirin, M. M., Bartholomew, P. F., & Zaman, J. (2003). Bank consolidation, internationalization and conglomeration: Trends and implications for financial risk (IMF Working Papers No. 158). International Monetary Fund.
  • Dukhan bank Media Center, Dukhan Bank Discloses Its Financial Results For The Year Ending 31 December 2022 Following Successful Listing On The Qatar Stock Exchange, February 2023, Accessed in March 2023, Accessed on: https://www.dukhanbank.com/media-center/press-release/dukhan-bank-discloses-its-financial-results-year-ending-31-december-2022%C2%A0
  • Eccles, R. G., Lanes, K. L., & Wilson, T. C. (1999). Are you paying too much for that acquisition? Harvard Business Review, 77(4), 136-146.
  • Feroz, E. H., Kim, S., & Raab, R. L. (2003). Financial statement analysis: A data envelopment analysis approach. Journal of the Operational Research Society, 54(1), 48-58.
  • Fixler, D. J., & Zieschang, K. D. (1993). An index number approach to measuring bank efficiency: An application to mergers. Journal of Banking & Finance, 17(2-3), 437-450.
  • Fridson, M. S., & Alvarez, F. (2011). Financial statement analysis: A practitioner's guide (Vol. 597). John Wiley & Sons.
  • Hassen, T., Fakhri, I., Bilel, A., Wassim, T., & Faouzi, H. (2018). Dynamic effects of mergers and acquisitions on the performance of Commercial European Banks. Journal of the Knowledge Economy, 9(3), 1032-1048.
  • Hubbard, N., & Purcell, J. (2001). Managing employee expectations during acquisitions. Human Resource Management Journal, 11(2), 17-33.
  • Ichsani, S., & Suhardi, A. R. (2015). The effect of return on equity (ROE) and return on investment (ROI) on trading volume. Procedia-Social and Behavioral Sciences, 211, 896-902.
  • Knapp, M. & Gart, A. (2014). Post-merger changes in bank credit risk: 1991-2006. Managerial Finance, 40(1), 51-71.
  • Kumar, R. (2009). Post-Merger Corporate Performance: An Indian Perspective. Management Research News, 145-157.
  • Kumar, P. (2017). Impact of earning per share and price earnings ratio on market price of share: a study on auto sector in India. International Journal of Research, 5(2), 113-118.
  • Kwan, S. H. & Eisenbeis, R. B. (1999). Mergers of publicly traded banking organizations revisited. Economic Review, q4, 26-37.
  • Lee, T., Liang, L. & Huang, B. (2013). Do Mergers Improve the Efficiency of Banks in Taiwan? Evidence from Stochastic Frontier Approach. The Journal of Developing Areas, 47(1), 395-416.
  • Mantravadi, P., & Reddy, A. V. (2008). Type of merger and impact on operating performance: The Indian experience. Economic and Political Weekly, 66-74.
  • Mishra, P. & Chandra, T. (2010). Mergers, acquisitions and firms’ performance: Experience of Indian pharmaceutical industry. Eurasian Journal of Business and Economics, 3(5), 111-126.
  • Pankaj, S. & Sushant, G. (2011). Mergers and Acquisitions: A pre-post analysis for the Indian financial services sector.
  • Rahayuningtyas, S. (2014). Pengaruh Rasio-Rasio Keuangan Terhadap Dividend Payout Ratio (DPR)(Studi Pada Perusahaan Yang Listing Di BEI Tahun 2009–2011) (Doctoral dissertation, Brawijaya University).
  • Resti, A. (1998). Regulation can foster mergers; can mergers foster efficiency? The Italian case. Journal of Economics and Business, 50(2), 157-169.
  • Sherman, A. J. (2010). Mergers & Acquisitions: From A to Z (3rd ed.). New York, USA: AMACOM. Sinha, P. & Gupta, S. (2011). Mergers and Acquisitions: A Pre-Post Analysis for the Indian Financial Services Sector.
  • Stahl, G. K., & Voigt, A. (2004). Impact of cultural differences on merger and acquisition performance: A critical research review and an integrative model. In C. Cooper, & S. Finkelstein (Eds.), Advances in Mergers and Acquisitions (Vol. 4, pp. 51-82). Bingley, UK: Emerald Group Publishing Limited.
  • Sufi, A. (2004). Does joint production of lending and underwriting help or hurt firms? A fixed effect approach. SSRN. November 2004.
  • Suroso, S. (2022). Analysis of the Effect of Capital Adequacy Ratio (CAR) and Loan to Deposit Ratio (LDR) on the Profits of Go Public Banks in the Indonesia Stock Exchange (IDX) Period 2016–2021. Economit Journal: Scientific Journal of Accountancy, Management and Finance, 2(1), 45-53.
  • Unal, I. M., & Aysan, A. F. (2022). Fintech, Digitalization, and Blockchain in Islamic Finance: Retrospective Investigation. FinTech, 1(4), 388-398.
  • Vitale, R. & Laux, J. A. (2012). The Economic Efficacy of Banking Mergers: 2006-2008. Journal of Applied Business Research, 28(6), 1211-1215.
  • Weinberg, M. (2007). The price effects of horizontal mergers. Journal of Competition Law and Economics, 4(2), 433-447.

Assessing the Financial Impact of Mergers on Islamic Banks: A Case Study of Sustainable Finance and Maqasid Approach

Year 2023, Volume: 5 Issue: 1, 1 - 21, 30.06.2023
https://doi.org/10.53569/apjhls.1284779

Abstract

Bank mergers and acquisitions (M&A) have been on the rise globally, particularly in emerging economies where policies aimed at enhancing financial system stability have been driving restructuring in the banking sector. Qatar's M&A market, while comparatively new, has distinct characteristics. A recent study aimed to determine the impact of M&A activity on the financial performance of Barwa Bank (later Dukhan Bank) in Qatar over six years from 2017-2022, covering three years before and three years post-merger. The study found that the bank's liquidity, profitability, solvency, and investment ratios did not vary significantly, suggesting that M&A activity did not significantly affect the bank’s financial performance. Despite these findings, the study provides recommendations for future research and implications for theory and practice in this area. The results are discussed in the light of SDGs and Maqasid al Shariah, and which goals this merger support the most are analyzed. The paper’s discussion is expected to be a guideline for future mergers to be more sustainable toward 2030 goals.

References

  • Abbas, Q., Hunjra, A. I., Azam, R. I., Ijaz, M. S., & Zahid, M. (2014). Financial performance of banks in Pakistan after Merger and Acquisition. Journal of Global Entrepreneurship Research, 4(13), 1-15.
  • Abbas, Q., Hunjra, A., Saeed, R. Ehsan U. & Ijaz, M. (2015). Analysis of Pre and Post Merger and Acquisition Financial Performance of Banks in Pakistan. Information Management and Business Review, 6(4), 177-190.
  • Abdou, H., Agbeyo, B., Jones, K., & Sorour, K. (2016). The impact of M&A on the Nigerian financial market: A pre-post analysis. Investment Management and Financial Innovation, 13(1), 138-150.
  • Abubakar, J., AlQashouti, B., Aysan, A., & Unal, I. M. (2022). Is Islamic Finance A Panacea for Global Economic Disruptions after COVID-19 Outbreak?. Available at SSRN 4085941.
  • Abusharba, M. T., Triyuwono, I., Ismail, M., & Rahman, A. F. (2013). Determinants of capital adequacy ratio (CAR) in Indonesian Islamic commercial banks. Global review of accounting and finance, 4(1), 159-170.
  • Akinroluyo, B. I. (2022). Capital Adequacy And Deposit Money Bank's Return On Asset (Roa) In Nigeria. Finance & Accounting Research Journal, 4(1), 1-13.
  • Akpan, M. N. U., Aik, N. C., Wanke, P. F., & Chau, W. H. (2018). Exploring the long-term trade-off between efficiency and value creation in horizontal M&As: Evidence from Nigeria. African Journal of Economic and Management Studies, 9(2), 130-147.
  • Amel, D., Barnes, C., Panetta, F. & Salleo, C. (2004). Consolidation & efficiency in the financial sector: A review of the international evidence. Journal of Banking & Finance, 3, 2493- 2519.
  • Andhani, D. (2019). Pengaruh Debt To Total Asset Ratio (DAR) dan Debt To Equity Ratio (DER) Terhadap Net Profit Margin (NPM) Serta dampaknya terhadap Harga Saham pada Perusahaan Elektronik di Bursa Efek Tokyo tahun 2007-2016. Jurnal SEKURITAS (Saham, Ekonomi, Keuangan Dan Investasi), 3(1), 45.
  • Austein, R., & Wijnen, B. (2005). Structure of the IETF Administrative Support Activity (IASA) (No. rfc4071). Aysan, Ahmet Faruk and Unal, Ibrahim Musa (2021): A Bibliometric Analysis of Fintech and Blockchain in Islamic Finance. Forthcoming in: Efil Journal of Economic Research , Vol. 4, No. 15 (1 September 2021).
  • Aysan, A. F., Belatik, A., Unal, I. M., & Ettaai, R. (2022). Fintech strategies of Islamic banks: a global empirical analysis. FinTech, 1(2), 206-215.
  • Aysan, A. F., & Unal, I. M. (2023). Challenges in Islamic Fintech and Digitalization: An Extensive Literature Review. World Scientific Annual Review of Islamic Finance, 1-12.
  • Awan, A. G., & Mahmood, U. B. (2015). Impact of mergers and acquisitions on the performance of commercial banks in Pakistan. Journal of Poverty, Investment and Development, 16, 48-56.
  • Badreldin, A. & Kalhoefer, C. (2009). The effect of mergers and acquisitions on bank performance in Egypt. Journal of Management Technology, 25, 1-15.
  • Berger, A. N. & DeYoung, L. (1997). Problem loans and cost efficiency in commercial banks. Journal of Banking and Finance, 21, 849-870.
  • Bindabel, W., Patel, A., & Yekini, C. O. (2017). The challenges faced by integrating Islamic corporate governance in companies of Gulf countries with non-Islamic companies across border through merger and acquisition. SSRN, September 2017.
  • Calomiris, C., & Karceski, J. (2000). Is the bank merger wave of the 1990s efficient? Lessons from nine case studies. In S. N. Kaplan (Ed.), Mergers and productivity (pp. 93-178). Chicago, USA: University of Chicago Press.
  • Caprion, L. (1999). The long-term performance of horizontal acquisitions: INSEAD Work Paper, 99/24/SM, April.
  • Cornett, M. M., McNutt, J. J. & Tehranian, H. (2006). Performance changes around bank mergers: Revenue enhancements versus cost reductions. Journal of Money, Credit and Banking, 38(4), 1013-1050.
  • De Nicoló, M. G., Zephirin, M. M., Bartholomew, P. F., & Zaman, J. (2003). Bank consolidation, internationalization and conglomeration: Trends and implications for financial risk (IMF Working Papers No. 158). International Monetary Fund.
  • Dukhan bank Media Center, Dukhan Bank Discloses Its Financial Results For The Year Ending 31 December 2022 Following Successful Listing On The Qatar Stock Exchange, February 2023, Accessed in March 2023, Accessed on: https://www.dukhanbank.com/media-center/press-release/dukhan-bank-discloses-its-financial-results-year-ending-31-december-2022%C2%A0
  • Eccles, R. G., Lanes, K. L., & Wilson, T. C. (1999). Are you paying too much for that acquisition? Harvard Business Review, 77(4), 136-146.
  • Feroz, E. H., Kim, S., & Raab, R. L. (2003). Financial statement analysis: A data envelopment analysis approach. Journal of the Operational Research Society, 54(1), 48-58.
  • Fixler, D. J., & Zieschang, K. D. (1993). An index number approach to measuring bank efficiency: An application to mergers. Journal of Banking & Finance, 17(2-3), 437-450.
  • Fridson, M. S., & Alvarez, F. (2011). Financial statement analysis: A practitioner's guide (Vol. 597). John Wiley & Sons.
  • Hassen, T., Fakhri, I., Bilel, A., Wassim, T., & Faouzi, H. (2018). Dynamic effects of mergers and acquisitions on the performance of Commercial European Banks. Journal of the Knowledge Economy, 9(3), 1032-1048.
  • Hubbard, N., & Purcell, J. (2001). Managing employee expectations during acquisitions. Human Resource Management Journal, 11(2), 17-33.
  • Ichsani, S., & Suhardi, A. R. (2015). The effect of return on equity (ROE) and return on investment (ROI) on trading volume. Procedia-Social and Behavioral Sciences, 211, 896-902.
  • Knapp, M. & Gart, A. (2014). Post-merger changes in bank credit risk: 1991-2006. Managerial Finance, 40(1), 51-71.
  • Kumar, R. (2009). Post-Merger Corporate Performance: An Indian Perspective. Management Research News, 145-157.
  • Kumar, P. (2017). Impact of earning per share and price earnings ratio on market price of share: a study on auto sector in India. International Journal of Research, 5(2), 113-118.
  • Kwan, S. H. & Eisenbeis, R. B. (1999). Mergers of publicly traded banking organizations revisited. Economic Review, q4, 26-37.
  • Lee, T., Liang, L. & Huang, B. (2013). Do Mergers Improve the Efficiency of Banks in Taiwan? Evidence from Stochastic Frontier Approach. The Journal of Developing Areas, 47(1), 395-416.
  • Mantravadi, P., & Reddy, A. V. (2008). Type of merger and impact on operating performance: The Indian experience. Economic and Political Weekly, 66-74.
  • Mishra, P. & Chandra, T. (2010). Mergers, acquisitions and firms’ performance: Experience of Indian pharmaceutical industry. Eurasian Journal of Business and Economics, 3(5), 111-126.
  • Pankaj, S. & Sushant, G. (2011). Mergers and Acquisitions: A pre-post analysis for the Indian financial services sector.
  • Rahayuningtyas, S. (2014). Pengaruh Rasio-Rasio Keuangan Terhadap Dividend Payout Ratio (DPR)(Studi Pada Perusahaan Yang Listing Di BEI Tahun 2009–2011) (Doctoral dissertation, Brawijaya University).
  • Resti, A. (1998). Regulation can foster mergers; can mergers foster efficiency? The Italian case. Journal of Economics and Business, 50(2), 157-169.
  • Sherman, A. J. (2010). Mergers & Acquisitions: From A to Z (3rd ed.). New York, USA: AMACOM. Sinha, P. & Gupta, S. (2011). Mergers and Acquisitions: A Pre-Post Analysis for the Indian Financial Services Sector.
  • Stahl, G. K., & Voigt, A. (2004). Impact of cultural differences on merger and acquisition performance: A critical research review and an integrative model. In C. Cooper, & S. Finkelstein (Eds.), Advances in Mergers and Acquisitions (Vol. 4, pp. 51-82). Bingley, UK: Emerald Group Publishing Limited.
  • Sufi, A. (2004). Does joint production of lending and underwriting help or hurt firms? A fixed effect approach. SSRN. November 2004.
  • Suroso, S. (2022). Analysis of the Effect of Capital Adequacy Ratio (CAR) and Loan to Deposit Ratio (LDR) on the Profits of Go Public Banks in the Indonesia Stock Exchange (IDX) Period 2016–2021. Economit Journal: Scientific Journal of Accountancy, Management and Finance, 2(1), 45-53.
  • Unal, I. M., & Aysan, A. F. (2022). Fintech, Digitalization, and Blockchain in Islamic Finance: Retrospective Investigation. FinTech, 1(4), 388-398.
  • Vitale, R. & Laux, J. A. (2012). The Economic Efficacy of Banking Mergers: 2006-2008. Journal of Applied Business Research, 28(6), 1211-1215.
  • Weinberg, M. (2007). The price effects of horizontal mergers. Journal of Competition Law and Economics, 4(2), 433-447.
There are 45 citations in total.

Details

Primary Language English
Subjects Finance
Journal Section Articles
Authors

Tamy Al-bınali 0000-0003-1988-921X

Publication Date June 30, 2023
Acceptance Date April 28, 2023
Published in Issue Year 2023 Volume: 5 Issue: 1

Cite

APA Al-bınali, T. (2023). Assessing the Financial Impact of Mergers on Islamic Banks: A Case Study of Sustainable Finance and Maqasid Approach. Academic Platform Journal of Halal Lifestyle, 5(1), 1-21. https://doi.org/10.53569/apjhls.1284779

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