Impacts of mergers and acquisitions on the performance of banking in Hong Kong

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Kumar, Akshay Manoj
Issue Date
MA of Business Administration
Dublin Business School
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Purpose: This research is primarily centred on examining the impact of mergers and acquisitions (M&A) on the business performance of the banking organisations in Hong Kong along with assessing the need for M&A strategies for businesses. In this relation, the study evaluates the current scenario regarding the adoption of M&A strategies in the banking sector of Hong Kong for analysing the impact of M&A strategies on the banking sector's performance. Design/methodology/approach: Mixed methods have been utilised for completing the study that indicates the inclusion of qualitative information, as well as quantitative data. Pragmatism philosophy is used in combination with exploratory design and deductive approach. The survey is carried out with the 50 Senior Employees of banking organisations of Hong Kong, and a semi-structured interview is conducted with six top-level management banking professionals of Hong Kong. Additionally, the pertinent case study of the acquisition of Wing Hang Bank Limited via Overseas Chinese Banking Corporation Limited is also integrated into the study. Statistical analysis is employed for examining the survey data while thematic analysis is used for interview data assessment. Findings: It has been found that use of M&A strategies in the banking sector positively influences operational efficiencies and economies of scale of banking organisations as aspects of cost reduction, competitiveness and financial performance exhibit positive outcomes post M&A. However, numerous challenges are encountered in the process of M&A that need to be managed adequately for ensuring positive outcomes on banking performance in Hong Kong. Research implications: Page 4 of 102 4 Impacts of M&A on Performance of Banking in Hong Kong The research discusses successful M&A strategies and key considerations for successful M&A in the banking sector that can further be considered by business organisations for accelerating their growth and performance through mergers. Limitations The research consists of a survey, interview and secondary methods that consumed a substantial amount of time and resources. Therefore, time and cost are the main constraints in this study.