Performance Analysis of M&A in UK banking sector (2nd STAGE) Essay

Performance Analysis of M&A in UK banking sector (2nd STAGE) - Essay Example As a matter of fact, the studies with regards to mergers and acquisition activities in the UK banking sector offers assorted conclusions. Altunabas and Ibanez describe about the bank mergers between the years 1992 and 2001 to lead on average in order to improvise the accounting profitability (Altunaz and Ibanez, 2004). Many empirical evidences have been provided which are evocative of the restrained opportunities for cost savings from bulk mergers in the banking commerce. Moreover, a little improvisation in the profit efficiency is also reported, but not in terms of cost efficaciousness with position to cross-border deals only. According to Cooke, most of the research analyses on mergers and acquisitions have been focused on the organizations which have been undergo a merger and many studies have seen a common condition marking the post-merger period (Cooke, 1986). Therefore, this paper targets the investigation of the influences of the M & A operations on accounting profitability me asures with reference to the UK banking sector over the period 2003-2007 by with the help of examining several performance gauges, thereby, distinguishing the part of transformation in presentation due to the M & A itself. According to Heffernan, banking can be construed to a wide range of financial institutions and organizations to the large money-centralized commercial banks and this paper describes about it in detail (Heffernan, 2005). The UK banking sector witnesses itself to be the third largest in the world after the United States and Japan, and is also a major international hub for investment and private banking (DeltaQuest, 2009). The banking sector of UK has an authoritative international recognition which is