Effect of Merger and Acquisition on Commercial Banks Performance
ABSTRACT
The study was designed to examine the effect of mergers and acquisitions in the banking industry in Nigeria the need to carry out this study arose from the challenges faced by Nigerian banks despite the reduction of banks from 89-25 at the end of 31st December 2005.
These current challenges faced by banks in the country have made researchers question the efficacy of the consolidation of banks in Nigeria; the exploration research method was used for this study.
Data was collected from textbooks, journals, conference papers, and the internet. The finding reveals that the consolidation (mergers and acquisition) activities in Nigeria did not meet the desired objectives of liquidity, capital adequacy, and corporate governance which have resulted in more troubled banks after the consolidation on the basis of these.
The study recommends among others the leadership should have the skill and require experience necessary to perform the role effectively and should have a sound understanding of the nature of the company business and its risk for smooth and efficient post-merge operation and also that corruption, fraud, and insider abuses must be minimized in the banking industry for the country to derive the benefit of merger and acquisitions of the bank.
TABLE OF CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgment iv
Abstract vi-vii
Table of Contents viii-ix
CHAPTER ONE:
INTRODUCTION 1
- Background to the study 1
- Statement of the Research Problem 2
- Objectives of Study 3
- Research Questions 3
- Research Hypothesis 3
- Scope of Study 3
- Limitation of Study 3
- Significance of Study 4
1.8 Operational Definition of Terms 4
1.9 Profile of the Case Study 5
CHAPTER TWO:
2.0 LITERATURE REVIEW 7
2.1 Conceptual Framework 7
2.2 Theoretical Framework 15
2.3 Empirical Framework 17
2.4 Limitation in Literature Review
CHAPTER THREE
- Research Methodology 19
3.1 Restatement of Research Questions and Hypothesis 19
3.2 Method and Source of Data Collection 19
3.3 Population of the study 20
3.4 Research Design 20
3.5 Sample Size 20
3.6 Method of Data Analysis 20
3.7 Data Collection Instrument 21
CHAPTER FOUR:
4.0 Data Presentation and Analysis 22
- Introduction 23
- Data Presentation 26
- Data Analysis and Interpretation 29
CHAPTER FIVE:
Discussion of Findings, Conclusion, and Recommendation
5.0 Introduction 30
5.1 Discussion of Findings 30
5.2 Conclusion 31
5.3 Recommendations 31
Appendix 32
Questionnaire 33
References
34
INTRODUCTION
The word merger and Acquisition have been at the forefront in the economic environment in recent years. Today, banks in the economies are from time to time with a vast array of Challenges from the operating environment.
Corporate efficiency has been rampaging the corporate world. It is not uncommon to see various organizations being plagued with a series of levels of unprofitability. This runs through the Whole gamete of the economy, both profit, and non-profit making companies operate in a dynamic environment created and influenced by a variety of forces.
The relevance of banks in the economics of any nation cannot be overemphasizing. They are the cornerstone of the economy of the country. The economics of all market-oriented nations depend on the efficient operation of complex and delicately balanced systems of money and credit backs are indispensable elements in this system.
They provide a bulk of money supply as well as the primary means of facilitating the flow of credit. Consequently, it is submitted that the economic well-being of a nation is a function of the advancement and development of her industry (obadan 1997).
REFERENCES
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