ABSTRACT
This paper gives an overview of
effects of mergers and acquisition on the performance of banks in Nigeria. It
examines the reason for Merger and acquisition which includes, diversification
of risk, synergy, and inefficient management. Economic of scale etc and the
reasons for its failure like too high premium, culture clash, poor business
fit, managements failure to integrate etc. The purpose of this study seeks
specifically to investigate relationship between bank size and bank
performance, identify factors that necessitated mergers and acquisition of
banks in Nigeria, and determine the existence of significant difference between
pre and post-merger shareholders wealth. The study adopts a combination of
survey research design and longitudinal design, five year financial statements.
for pre and post merger period were collected from the consolidated banks in
study. This was complemented with survey data on the selected research question
relevant to the topic under study obtained from 132 respondents using
researched designed questionnaire validated by experts correlation and T- Test
techniques were used to analyse the date, our result reveals five causative
factors, 6(six,) effects and 4 justification for merger and acquisition of
banks in Nigeria. With mean scores above the acceptable mean score of 2.5 on
the scale respectively. The correlation results Ho1 and Ho2 (A and B) indicates
for Ho 1 a strong positive relationship between bank size and Bank performance
at 0.01 level of significant, Ho2 a indicates also a positive relationship
between pre and post merge- profitability performance of banks (using profit
after tax, loans and advances) at 0.01 level of significant and Ho2B (using
profit after tax and total assets) at 0.05 level. Ho3 indicate a strong relationship
significant difference between pie and post merger performance of consolidated
bank Nigeria. The study therefore concludes that explicating who the dominant
partner is, refocusing the strategic fit for the merging entities, avoidance of
the conqueror syndrome are all geared towards strategies for a successful
merger and acquisition of banks in Nigeria.
ONYEMACHI, O (2021). Effects Of Mergers And Acquisitions Of Nigerian Banks On Their Performance. (A Study Of Access And Fidelity Bank Plc Umuahia). Mouau.afribary.org: Retrieved Nov 01, 2024, from https://repository.mouau.edu.ng/work/view/effects-of-mergers-and-acquisitions-of-nigerian-banks-on-their-performance-a-study-of-access-and-fidelity-bank-plc-umuahia-7-2
ONYINYECHI, ONYEMACHI. "Effects Of Mergers And Acquisitions Of Nigerian Banks On Their Performance. (A Study Of Access And Fidelity Bank Plc Umuahia)" Mouau.afribary.org. Mouau.afribary.org, 05 Jul. 2021, https://repository.mouau.edu.ng/work/view/effects-of-mergers-and-acquisitions-of-nigerian-banks-on-their-performance-a-study-of-access-and-fidelity-bank-plc-umuahia-7-2. Accessed 01 Nov. 2024.
ONYINYECHI, ONYEMACHI. "Effects Of Mergers And Acquisitions Of Nigerian Banks On Their Performance. (A Study Of Access And Fidelity Bank Plc Umuahia)". Mouau.afribary.org, Mouau.afribary.org, 05 Jul. 2021. Web. 01 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effects-of-mergers-and-acquisitions-of-nigerian-banks-on-their-performance-a-study-of-access-and-fidelity-bank-plc-umuahia-7-2 >.
ONYINYECHI, ONYEMACHI. "Effects Of Mergers And Acquisitions Of Nigerian Banks On Their Performance. (A Study Of Access And Fidelity Bank Plc Umuahia)" Mouau.afribary.org (2021). Accessed 01 Nov. 2024. https://repository.mouau.edu.ng/work/view/effects-of-mergers-and-acquisitions-of-nigerian-banks-on-their-performance-a-study-of-access-and-fidelity-bank-plc-umuahia-7-2