Research On Financial Risk Evaluation Framework Of Commercial Bank M&A

At present there are few literature about financial risks of commercial bank M&A, so we aim at establishing basic analysis framework and method in analyzing financial risks of bank M&A, thus providing investment analysis and decision making suggestions for investors and potential investors. We lay foundation for further study of financial risks of commercial bank M&A.This dissertation is divided into six parts. We first introduce the studying background, studying significance, literature review, studying method and studying innovation and deficiency. Then we give the definition of financial risks of commercial bank M&A, and introduce related theories of commercial bank M&A, stating that the asymmetric information is the key factor to lead to the failure of the M&A. In the third part, we elaborate the financial risk factors of the commercial bank M&A, such as financial risks of the acquired party, valuation risk, financing risk, and the payment risk. Based on the third part, in our fourth part, we establish the analysis framework of the bank M&A financial risk evaluation and calculate the weight of each financial risk factor. In the fifth part, we come to following conclusions. Firstly, choose proper target and fully evaluate the financial risk of the target. Secondly, focus on valuation risk. Thirdly, the acquirers should concern about the financing risk. Fourthly, analyze the payment risk of the deal. Lastly, in the process of the M&A, investors should keep track of the changes of the financial risk factors and the economic. We lay the foundation for later research.Our study uses both the empirical and normative analysis method, and we establish the analysis framework of financial risks of commercial bank M&A based on cases at home and abroad. But because there are few cases at home, there is little research and experience about commercial bank M&A in both academia and industry. So we didn’t fully analyze the related financial bank M&A cases.