IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxy2017i4ap501-514.html
   My bibliography  Save this article

The Diversification of Banking Capital Sources and Cash Flow Granularity in Merger and Acquisition Transactions

Author

Listed:
  • Natalia Nikolaevna Natocheeva
  • Yury Alexandrovich Rovensky
  • Tatiana Viktorovna Belyanchikova
  • Yury Yuryevich Rusanov

Abstract

The article analyzes banking merger and acquisition (M&A) market over the past three years. The conducted analysis has shown that there is a market outflow of foreign investors, while deals become larger, and banks are consolidating, including that with other non-banking sectors in order to strengthen market positions and consolidate capital, the cost of which is dependent on several factors. The authors have developed price parameters characterizing banking capitals involved in transactions on M&A market. The price parameters include inflation rate, present discounted value, tax level, capital structure, interest rates for attraction and placement of funds of credit institutions, as well as the parameters, which have not yet been considered in the existing theories. These are the diversification level of capital sources and the granularity of the banking cash flows. The authors put forward the hypothesis about the significant impact of these price parameters on the capital cost of banks involved in mergers and acquisitions (M&As), and proposed three optimization options, namely spatial, temporal, and spatiotemporal optimization. Confirmation of the hypothesis was reflected in spatiotemporal optimization of capital sources diversification and cash flow granularity of the credit organizations.

Suggested Citation

  • Natalia Nikolaevna Natocheeva & Yury Alexandrovich Rovensky & Tatiana Viktorovna Belyanchikova & Yury Yuryevich Rusanov, 2017. "The Diversification of Banking Capital Sources and Cash Flow Granularity in Merger and Acquisition Transactions," European Research Studies Journal, European Research Studies Journal, vol. 0(4A), pages 501-514.
    • Handle: RePEc:ers:journl:v:xx:y:2017:i:4a:p:501-514
    as

    Download full text from publisher

    File URL: http://ersj.eu/dmdocuments/2017-xx-4-a-35.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Winston Pontoh, 2017. "The Capital Structure: Is Debt just a Policy or Requerement?," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 128-139.
    2. Jean-Pierre Allegret & Helene Raymond & Houda Rharrabti, 2016. "The Impact of the Eurozone Crisis on European Banks Stocks Contagion or Interdependence?," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 129-148.
    3. G.A. Batischeva & M.Y. Denisov & I.V. Rybchinskaya & M.B. Stryukov, 2017. "Influence of Social and Economic Development of the Region on the Functioning of the Regional Banking System," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 490-499.
    4. Simon Grima & Inna Romanova & Frank Bezzina & Frank Chetcuti Dimech, 2016. "Alternative Investment Fund Managers Directive and its Impact on Malta’s Financial Service Industry," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 70-85.
    5. Eleftherios Thalassinos, 2008. "Trends and Developments in the European Financial Sector," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2008(3), pages 44-61.
    6. Stavros H. Arvanitis & Irakleia S. Tzigkounaki & Theodoros V. Stamatopoulos & Eleftherios I. Thalassinos, 2012. "Dynamic Approach of Capital Structure of European Shipping Companies," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 5(3), pages 33-63, December.
    7. Konstantinos Liapis & Antonios Rovolis & Christos Galanos & Eleftherios Thalassinos, 2013. "The Clusters of Economic Similarities between EU Countries: A View Under Recent Financial and Debt Crisis," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 41-66.
    8. Zulfi Diane Zaini, 2017. "The Function of Financial Services Authority (FSA) in Dispute Settlement Banking Customers in Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 69-81.
    9. V.V. Mitrokhin & S.S. Artemyeva & I.K. Simaeva, 2016. "Assessment of the Balance Degree of Loan Companies Banking Policy," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 19-31.
    10. Eleftherios I. Thalassinos & Bozhana Venediktova & Daniela Staneva-Petkova & Vicky Zampeta, 2013. "Way of Banking Development Abroad: Branches or Subsidiaries," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 69-78.
    11. Eleftherios I. Thalassinos & Theodoros Stamatopoulos & Pantelis E. Thalassinos, 2015. "The European Sovereign Debt Crisis and the Role of Credit Swaps," World Scientific Book Chapters, in: Anastasios G Malliaris & William T Ziemba (ed.), THE WORLD SCIENTIFIC HANDBOOK OF FUTURES MARKETS, chapter 20, pages 605-639, World Scientific Publishing Co. Pte. Ltd..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hossain, Mohammed Sawkat, 2021. "Merger & Acquisitions (M&As) as an important strategic vehicle in business: Thematic areas, research avenues & possible suggestions," Journal of Economics and Business, Elsevier, vol. 116(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Julia Vladimirovna Gnezdova & Vladimir Ivanovich Barilenko & Nikolai Nikolaevich Semenov & Yurii Vasil'evich Yakutin & Svetlana Vladimirovna Sharova, 2017. "Current Trends in the Development of Russia’s E-Commerce Sector," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 472-483.
    2. Andrei V. Vlasov, 2017. "The Evolution of E-Money," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 215-224.
    3. Irina Japparova & Ramona Rupeika-Apoga, 2017. "Banking Business Models of the Digital Future: The Case of Latvia," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 846-860.
    4. N.G. Vovchenko & M.G. Holina & A.S. Orobinskiy & R.A. Sichev, 2017. "Ensuring Financial Stability of Companies on the Basis of International Experience in Construction of Risks Maps, Internal Control and Audit," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 350-368.
    5. repec:ers:journl:v:v:y:2017:i:1:p:3-17 is not listed on IDEAS
    6. Nikolay Tikhonovich Labyntsev & Elena Aleksandrovna Sharovatova & Irina Aleksandrovna Omelchenko & Tatyana Valeryevna Makarenko, 2017. "Tendencies of Standardisation of Management Accounting in Russian and International Practices," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 45-60.
    7. John Chalikias, 2017. "The Manufacturing Sector of Greece Before and During the Financial Crisis," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 3-17.
    8. Nikolaos K. Kalogeridis & Evagelos Drimbetas & Marios E. Menexiadis, 2016. "The Effect of Internal, Industry and Macroeconomic Factors on Banking Profitability: Evidence from the Post 2000 Southern European Banking Sector," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4).
    9. M.A. Surzhikov & A.A. Sycheva, 2017. "Process Approach to Modeling of National and Global Securities Market Operation," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 84-91.
    10. N.V. Petrasheva & S.I. Ulezko & A.V. Yakovlev & A.L. Klochkova, 2017. "Economic Crime and Problem of Complicity Understanding," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 208-214.
    11. E.A. Posnaya & I.G. Vorobyova & S.V. Tarasenko, 2017. "Improving the Bank Reliability Evaluation Framework," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 138-147.
    12. O.V. Andreeva & E.V. Shevchik, 2017. "Organizational and Financial Modeling of Transnational Industrial Clusters Sustainable Development: Experience, Risks, Management Innovation," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 137-147.
    13. Xanthippi Chapsa & Nikolaos Tabakis & Athanasios L. Athanasenas, 2018. "Investigating the Catching-Up Hypothesis Using Panel Unit Root Tests: Evidence from the PIIGS," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 250-271.
    14. Oksana Viktorovna Kuchmaeva & Elena Aleksandrovna Maryganova & Olga Anatolievna Mahova & Tatyana Pavlovna Maksimova, 2017. "Implementing the Concept of Sustainable Development in Russia: Developing the Childhood Infrastructure," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 522-535.
    15. Baurzhan R. Shakirtkhanov, 2017. "Venture Funds as one of the Major Sources of Investment for Innovative Entrepreneurship in the Republic of Kazakhstan," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 334-347.
    16. Elena G. Popkova & Ekaterina A. Popova & Irina P. Denisova & Elena V. Porollo, 2017. "New Approaches to Modernization of Spatial and Sectorial Development of Russian and Greek Regional Economy," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 129-136.
    17. Alena Anatolievna Uksumenko & Irina Aleksandrovna Kuzmicheva & Olga Yurievna Vorozhbit, 2017. "Effective Marketing Strategy for Regional Banks," European Research Studies Journal, European Research Studies Journal, vol. 0(4A), pages 558-567.
    18. Zulfi Diane Zaini, 2018. "Functions of the Bank of Indonesia as Lender ofLast Resort for Banks\' Safety," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 607-621.
    19. Nikolay Tikhomirov & Tatiana Tikhomirova & Eldar Khamitov & Vladimir Ponomarev, 2017. "Models of Assessment of the Influnce of Insurance Assets Securitization on Stability of Mutual Insurance Societies," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 321-333.
    20. I.N. Efremenko & L. Haabazoka & V.A. Larionov, 2017. "Development of the International Monetary System Conditions of Globalization," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 269-279.
    21. Garnov & A. & Zvyagin & L. & Sviridova & O., 2019. "System Data Analysis: Innovative Technologies, Methods and Techniques," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 1), pages 26-39.

    More about this item

    Keywords

    Mergers and acquisitions; price parameters; diversification of sources; granularity of cash flow; banking capital; spatial optimization; temporal optimization; spatiotemporal optimization; financial losses. JEL Classification: G21; G30; G34; G39.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xx:y:2017:i:4a:p:501-514. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.