LSST’s Business and Hospitality Programme Manager publishes two articles in prestigious Journal of Financial Economic Policy
By Doncho Borisov | Article Date: 24 January 2020
LSST is thrilled to announce that its Programme Manager for Business and Hospitality Management, Dr Mohamad Hassan, has published two leading finance orientated articles in the prestigious Journal of Financial Economic Policy.
The Journal of Financial Economic Policy publishes high quality peer reviewed research on financial economic policy issues. The journal is devoted to the advancement of the understanding of the entire spectrum of financial policy and control issues and their interactions to economic phenomena.
The first article is titled: Financial institutions mergers – a strategy choice of wealth maximisation and economic value. The study focuses shareholders’ value adjustment in response to financial institutions (FIs) merger announcements in the immediate event window and in the extended event window. The study also investigates accounting measures performance, comparison of post-merger to pre-merger, including several cash flow measures. The study examines FIs mergers orientations of diversification and focus create more value for shareholders.
The second article is titled: How bank regulations impact efficiency and performance? This study aims to examine the impact of regulation and other micro- and macro-economic factors on banks’ productivity growth. It investigates the impact of different regulatory reforms on banks’ performance of total factor productivity (TFP) and its component efficiencies, along with their association with bank-specific variables of profitability and equity, and with macro-level variables of economy and freedom.
Commenting on his achievements, Dr Mohamad Hassan said: ‘Publishing in peer reviewed journals is not an easy process, but it is worth doing as it is so rewarding. It takes at least several months get a confirmation of receipt of accepting the submitted draft. Following draft acceptance, it takes several additional months of correcting and adjusting drafts to become final drafts, and few more for typesetting and preparation for publication. However, this forms as part of an educational process. Not only in the process of presenting your research to a wider audience, but also from the comments you receive from peers and reviewers, and how they improve the quality of your research. I recommend all colleagues to present their research in international conferences before going for publication. This will enhance their networking and reach for co-authoring and they would receive comments that would contribute to elevating their paper caliber.’
Dr Mohamad Hassan went on to add: ‘The publication of these two articles carries a significance related to the socio-economic effect of the financial system resilience through its risk and return profiles with regards to their consolidation strategies and mergers. This is particularly important around the advancements we are witnessing in the financial technology (FinTech) and the speed of transactions and change of landscape with new services and products. Furthermore, such topics analyse FI performance and risk around FI crisis (2007-2011) in response to strategic orientation of mergers. This analysis is significantly essential as we are expecting a global financial distress in mid to late 2020.’
LSST’s Deputy CEO, Mr Mohammed Zaidi, added: ‘I commend Dr Mohamad Hassan on his published research achievements. His work has – and will –inspire countless students and staff at LSST and beyond in numerous positive ways. Further, the real value of published research is the knowledge community it creates and sustains.’
The links to the articles and their contributions are summarised below:
Financial institutions mergers: a strategy choice of wealth maximisation and economic value
A significant advancement over the current literature is in assessing mergers, not only for bank bidders but also for the three pillars FIs of the financial sector; banks, real-estate companies and investment companies’ mergers. It is an improvement over current finance literature because it deploys two different strategies in the analysis. At a univariate level, shareholder value creation and market reaction to merger announcements are examined over short (−5 or +5 days) and long (+230 days) windows of the event. Followed by regressing, the resultant CARs and BHARs over financial performance variables at the multivariate level.
How bank regulations impact efficiency and performance?
This paper contributes to the literature by examining the relationship between the implementation of regulatory standards and the performance of the banking sector following a structural model of the banking firm and the concept of optimisation. An additional contribution of this study is that it examines economies with different levels of income based on the gross national income per capita. The study summarises bank-specific data used to synthesise the banks’ productivity (inputs and outputs) and country-specific economic and regulatory compliance data over 19 years (1999-2017). The extent of this data set coverage makes it most recent and most conclusive of variables to provide a significant contribution to the literature on bank regulation and efficiency effect.
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