The Effects of M&A on Small and Medium Business Lending:
Project description:
This study is based on the following question: How do bank mergers and acquisitions impact lending to small and medium enterprises? The only purpose of this paper is to provide an outline of the literature review. The literature review will be organized into the following topic areas: Background of bank mergers and acquisitions, Bank lending to small and medium enterprises, the effects of bank mergers and acquisitions on small and medium business lending. Sources of references are listed next to each theme and possible subsections are listed under each main topic area.
List of themes:
Background of bank M&A (Berger, 1997; Patti, 2001; Wang, 2007)
Definition of M&A
Types of M&A
Why do banks engage into M&A?
Bank lending to small and medium enterprises (Ayyagari, 2007; Kunt, 2006)
Bank and SMEs relationships
Definition of SMEs
The importance of SMEs for national economy
The effects of M&As on small and medium enterprises lending (Berger, 1997; Frame, 2001; Keeton, 1996; Patti, 2001; Takats, 2004)
Conclusion:
My reason for writing this paper is to provide an outline of the literature review on the topic of the effects of M&A on small and medium enterprises lending. The researcher hopes to provide some background information of this topic by explaining the three major themes: Background of bank mergers and acquisitions, Bank lending to small and medium enterprises, the effects of bank mergers and acquisitions on small and medium business lending. The most selected references agreed on the effects of bank mergers and acquisitions on small and medium business lending. They also reveal a troubling gap between the economic development board and the need of small and medium business for more financial support programs which have negative impact by bank mergers and acquisitions. Therefore, the selected references will be adopted to offer us the possibility of understanding the nature of bank mergers and acquisitions and further the advantages and disadvantages of developing this type of bank mergers and acquisitions on small and medium business lending.
References:
Ayyagari, M., Beck, T., & Demirguc-Kunt, A. (2007). Small and medium enterprises across the globe. Small Business Economics, 29(4), 415-434.
Berger, A. N., Saunders, A., Scalise, J. M., & Udell, G. F. (1998). The effects of bank mergers and acquisitions on small business lending. Journal of financial Economics, 50(2), 187-229.
Demirguc-Kunt, A. (2007). Small and Medium Enterprises Across the Globe. Small Business Economics, 29, 415-434.
Di Patti, E. B., & Gobbi, G. (2001). The effects of bank consolidation and market entry on small business lending. Banca d’Italia.
Frame, W. S., Srinivasan, A., & Woosley, L. (2001). The effect of credit scoring on small-business lending. Journal of Money, Credit and Banking, 813-825.
Keeton, W. R. (1996). Do bank mergers reduce lending to businesses and farmers? New evidence from tenth district states. ECONOMIC REVIEW-FEDERAL RESERVE BANK OF KANSAS CITY, 81, 63-76.
Takats, E. (2004). Banking consolidation and small business lending.
WANG, J. (2007). Motives and Consequences of Mergers and Acquisitions (Doctoral dissertation, University of Nottingham).