ABSTRACT
The objective of this work was to
primarily evaluate the effect of merger and acquisition on the return on asset
and the return on equity of Fidelity Bank Plc Nigeria. To achieve this,
research questions and hypotheses were formulated. The analytical techniques used
to answer such questions and just i5' the stated hypotheses was simple
regression analysis. Equity was used as a proxy for merger and acquisition
(independent variable,) while return on equity and return on asset (dependent
variables) were used to determine the growth and survival of this firm. This was
based on data from the firm's published annual report and accounts for a period
of fourteen years. From the result of the first analysis, the adjusted R2of the
pre-merger of both ROA (return on asset) and ROE (return on equity) were
greater than that of the post-merger and their F-statistic (Prob.) were greater
than the 5% level of significance, which gave rise to the conclusion that
merger and acquisition has no significant effect on firms growth and survival.
But since this firm or bank did not have any structural break in its operation,
a second analysis was conducted using the TROA (total return on asset) and TROE
(total return on equity) for the period of fourteen years (i.e. 2000-2013,).
From the result of the second analysis, the F-statistic (Prob.) of both TROA
(total return on asset) and TROE (total return on equity) were lesser than the
5%level of significance and their adjusted R2were far more greater than that of
the pre and post merger of the first analysis which brings to the conclusion
that merger and acquisition helps firms' to grow and survive by increasing the
earnings of the firm 's asset (ROA,) and the profits of its equity (ROE).
Finally, it was recommended that firms should be encouraged to merge especially
those at the verge of liquidation and also the cost of acquisition and mergers
should be reduced so as to ensure the maximization of return on asset and
return on equity.
UGO, E (2021). Effect Of Mergers And Acquisitions As A Strategy For Growth And Survival Of Firms In Nigeria (A Study Of Fidelity Bank Plc Nigeria). Mouau.afribary.org: Retrieved Nov 27, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-mergers-and-acquisitions-as-a-strategy-for-growth-and-survival-of-firms-in-nigeria-a-study-of-fidelity-bank-plc-nigeria-7-2
EDITH, UGO. "Effect Of Mergers And Acquisitions As A Strategy For Growth And Survival Of Firms In Nigeria (A Study Of Fidelity Bank Plc Nigeria)" Mouau.afribary.org. Mouau.afribary.org, 27 Jul. 2021, https://repository.mouau.edu.ng/work/view/effect-of-mergers-and-acquisitions-as-a-strategy-for-growth-and-survival-of-firms-in-nigeria-a-study-of-fidelity-bank-plc-nigeria-7-2. Accessed 27 Nov. 2024.
EDITH, UGO. "Effect Of Mergers And Acquisitions As A Strategy For Growth And Survival Of Firms In Nigeria (A Study Of Fidelity Bank Plc Nigeria)". Mouau.afribary.org, Mouau.afribary.org, 27 Jul. 2021. Web. 27 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-mergers-and-acquisitions-as-a-strategy-for-growth-and-survival-of-firms-in-nigeria-a-study-of-fidelity-bank-plc-nigeria-7-2 >.
EDITH, UGO. "Effect Of Mergers And Acquisitions As A Strategy For Growth And Survival Of Firms In Nigeria (A Study Of Fidelity Bank Plc Nigeria)" Mouau.afribary.org (2021). Accessed 27 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-mergers-and-acquisitions-as-a-strategy-for-growth-and-survival-of-firms-in-nigeria-a-study-of-fidelity-bank-plc-nigeria-7-2