Tracing the M&amp;A Footprints in Bailouts and Credit Ratings of European Banks During the 2008 Financial Crisis

Aziz, Saqib; Lilti, Jean-Jacques; Elbadraoui, Khalid

doi:10.2139/ssrn.2748576

Cited by 1 publication

(1 citation statement)

References 13 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Some analysts have said that several big conglomerates may fall into the too-big-to-fail category. However, most experts agree that government bailouts (Aziz et al, 2016;Gray et al, 2015) should be rarely, if ever, applied in a free market system (Röpke, 2014).…”

Section: Introductionmentioning

confidence: 99%

A Causal Analysis of Conglomerate Bankruptcies

KU¹,

WHANG²

2020

Int Convergence Manag Assoc

View full text Add to dashboard Cite

Purpose-Strategic causes for the failure include unrealistic growth, overexpansion, unfamiliar new markets, volume obsession, unrealistic promises and poor project selection. Organizational causes are insufficient capital and profits, lack of business knowledge, poor financial management, poor sales skills, inadequate marketing, poor leadership, poor leadership transfer, project losses, poor field performance and owner bankruptcy. Uncontrollable causes include industry and economic weakness and banking and surety changes. While helpful, the list provides insufficient clarity regarding the causal roots of failure. Research design, data and methodology-The research framework to organize the information involved with many of the recent and large failures in the industry. Results-This research then identified five dominant root causes-excessive egoism, poor strategic leadership, too much change, loss of discipline and inadequate capitalization. Conclusion-Finally, additional input from external forces may accelerate the firm's pace to failure. It is important on the development of diagnostic tools that are based on this model and that will provide new ways to assess a conglomerate's level of risk for incurring a financial crisis.

show abstract

Section: Introductionmentioning

confidence: 99%