| 摘要(英) |
No one can deny that there is a trend in financial consolidation, including domestic and international banks, around the world for the prevalent perception of large organizations to be “too big to fall”.
Bank mergers can increase value by reducing costs and/or increasing revenues. Revenue grows for diversification or cross-selling of bank service. Cost-down is from eliminating redundant facilities, staffs or even a department.
However, most of the existing literatures examine the behavior of bank consolidation in the way of collecting financial data after banks consolidated and then try to figure out what the motives of the participating banks seeking for and what merger benefits for different stakeholders. On the important M&A topic, there is few paper to explore the merger gain in the ex ante viewpoint. That is, before the event of bank consolidation, what impact will be occurred for each independent bank or what benefit will be achieved for shareholders if the decision of M&A is made is analyzed in advance. This paper combines the concepts of real-option and capital budgeting to view the synergy of bank consolidation. We modify Schwartz and Moon’s (2000) model to price the transaction value of bank and calculate the merger-related gain as the value created from the merger activity.
We implement the procedure to value the merger of two commercial banks in Taiwan- Taishin Bank and Dah An Bank. After estimating the model parameters by historical financial reports, and solving by simulation, the value of the Taishin Bank is NT$ 338,358,299 thousands and the Dah An Bank is NT$315,542,557 thousands.
The consolidation value is NT$868,031,438 thousands, and the increased bank value ratio is 32.75%. We perform sensitivity analysis to figure out the important parameters that impact on the value of the consolidation bank. We find the cost saving in variable cost is more obvious than cost saving in fixed cost in bank value created. |
| 參考文獻 |
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