Analysis of the Article - The Effects of Bank Mergers and Acquisitions Research Paper

Analysis of the Article - The Effects of Bank Mergers and Acquisitions on Small Business Lending - Research Paper Example The simplistic analysis makes the assumption that lending tendencies are static and depend exclusively on the size of the bank while neglecting the important nature of mergers and acquisitions as dynamic events which may consider changes in the conduct of the organization further than the simple static aggregation associated with the merging institutions. The study departs from a majority of the existing writings through the examination of the dynamic effect of mergers and acquisitions instead of arriving at assumptions simply from static deductions. It also departs from existing literature through modelling the overall effects of mergers and acquisitions on small business lending as a blend of several separate static and dynamic effects and through the measurement of effects of mergers and acquisitions on lending by other banks in the local market. Ultimately, the research seeks to understand the how mergers and acquisitions empirically in banks affect the tendency to lend to small businesses through measuring static, restructuring, as well as direct effects of the numerous mergers and acquisitions of United States banks from the 70s to the early 90s. The external impact of the mergers and acquisitions on the lending associated will all the banks in their local markets, whether or not the banks are involved in mergers or acquisitions will be measured. The introductory statements were in agreement with the title and can be considered to be of an educational significance. The average leader can easily understand the issue that is being discussed in the paper without the need to go over the literature several times. It is easy to understand why the researcher felt the need to study the issues that are discussed in the introductory literature.