Effect Of Merger And Acquisition On Shareholders Wealth And Profitability Of Companies In Nigeria. Case Study (First City Monument Bank Plc)

Igboanugo Chukwuemeka Josiah | 70 pages (14583 words) | Projects

Abstract

Banks' recapitalization is based on a belief that gains can accrue through expense reduction, increased market power, reduced earnings volatility, and scale and scope economies.   However,   whether  or  not  merger  and  acquisition  scheme,   widely employed by banks in Nigeria during the recapitalization exercise between 2004 and 2005, actually assist in realizing the expected gains is the basis of this research work.   Thus,   the  hypothesis   that  bank   merger    and   acquisition   does not affect the shareholders wealth and profitabilities of companies in Nigeria was tested using the test-statistical tool (t-test). To achieve this objective,  the study specifically compared pre-merger against post-merger of shareholder's  networth,  total asset and profit after tax.  Secondary source of data was collected from the published and audited financial statements of First City Monument Bank pie,which was analyzed using the t-test techniques.  The study found out that pre-merger  and post-merger has significant difference on shareholders networth and total asset while pre-merger and post-merger  profit  after  tax  has  no  significant  difference.  The study  therefore recommends that merger and acquisition should be embraced to take advantage of synergy, expertise,  in addition to capital contribution by banks in Nigeria,  also a functional internal control system should be established in order to prevent  the incidence of fraud and other anomalies  in the banking system.


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APA

IGBOANUGO, J (2021). Effect Of Merger And Acquisition On Shareholders Wealth And Profitability Of Companies In Nigeria. Case Study (First City Monument Bank Plc). Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-merger-and-acquisition-on-shareholders-wealth-and-profitability-of-companies-in-nigeria-case-study-first-city-monument-bank-plc-7-2

MLA 8th

JOSIAH, IGBOANUGO. "Effect Of Merger And Acquisition On Shareholders Wealth And Profitability Of Companies In Nigeria. Case Study (First City Monument Bank Plc)" Mouau.afribary.org. Mouau.afribary.org, 09 Mar. 2021, https://repository.mouau.edu.ng/work/view/effect-of-merger-and-acquisition-on-shareholders-wealth-and-profitability-of-companies-in-nigeria-case-study-first-city-monument-bank-plc-7-2. Accessed 31 Oct. 2024.

MLA7

JOSIAH, IGBOANUGO. "Effect Of Merger And Acquisition On Shareholders Wealth And Profitability Of Companies In Nigeria. Case Study (First City Monument Bank Plc)". Mouau.afribary.org, Mouau.afribary.org, 09 Mar. 2021. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-merger-and-acquisition-on-shareholders-wealth-and-profitability-of-companies-in-nigeria-case-study-first-city-monument-bank-plc-7-2 >.

Chicago

JOSIAH, IGBOANUGO. "Effect Of Merger And Acquisition On Shareholders Wealth And Profitability Of Companies In Nigeria. Case Study (First City Monument Bank Plc)" Mouau.afribary.org (2021). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-merger-and-acquisition-on-shareholders-wealth-and-profitability-of-companies-in-nigeria-case-study-first-city-monument-bank-plc-7-2

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