أثر سياسة الاندماج علي القيمة السوقية للمصارف الاردنية : دراسة حالة البنك الاهلى الاردنى

Abstract

Abstract The banking sector, represented in banks and financial institutions, is considered as the true mirror of the economic situation of any country in the world. This study aimed to measure the effect of merging policy on the market value of the Jordanian banking companies. This is case study in which the researcher followed the "pre" and the "post" approach for the process of merger, which was performed in l997, between Business Bank and Jordanian National Bank, which resulted in the creation of the Jordanian National Bank. The study aimed to test the two main hypotheses which are: l- There is no relationship between merging commercial banks and the market value. This hypothesis branched into other four sub-hypotheses. 2- The process of merger does not necessarily lead to improve level of performance of the bank after "post" the merger. This hypothesis branched into other six sub-hypotheses. The present study revealed the following results: l-The merger occurred between the two banks (i.e. Business Bank and Jordanian National Bank) is considered a voluntary merger. 2- The merger which took place was disappointing and did not fulfill the aspirations, where it did not lead to the rise of the market value of the Jordanian National Bank afler "post" the merger. It did not lead to improve liquidity, revenue on assets, and property rights. The improvement was significant in the capital index, which is natural and profit efficiency. 3-The process of merger between the two banks (i.e. the Jordanian National Bank and Business Bank) did not lead to raise the competitive capacity of the Jordanian National Bank so much in areas of offering banking services neither in quantity nor in quality.

4-There was no effect of mergers over profits of deposits and current accounts, where they drop in merger markets compared to other markets? 5-It is not necessary that the merger rise of the volume of the bank or the extension of its activities, as a result of merger, would lead to drop expenses or to facilitate the capacity to gain profits, where the bank was faced, unlike any other banks, with what is known as "regular risks", as indicated earlier in the banking difficulties. 6-An important result was concluded, which says that the stock price is not considered as the only index to measure profit capacity "performance", nor the only index to raise the market value of the bank. It is, rather, the net income realized by means of banking transactions performed by the bank, which have a big effect, as the number of stocks transacted and subscribed and capacity of the administration of assets and liabilities. All of these, with no exception, contribute to facilitate the performance of the bank and lead to the rise of its market value. In the light of the results of the study the researcher recommended: 1- Encouraging the banks, which are good in their performance, to merge together. 2- Not to delay the execution of the reached decision concerning the merger. 3- Paying attention to the human factor and not to downsize the staff. 4- Planning for a well studied merger and after it. 5- It is necessary that the process of merger should be supervised and monitored by specialized technical work teams. ' 6- It is necessary to classily banks in the light of their performance, in order to raise the confidence of their clients, by specialized institutions. 7- It is inevitable to make intensives available by the monetary authorities in order help the process of merger to be successful.. 8- The necessity of doing future researches’ and studies about multiinternational companies.