Evaluation Of The Effect Of Merger And Acquisition On Shareholders Wealth And Profitability Of Nigeria (A Study Of Selected Quoted Companies)

ABSTRACT

This work examined the evaluation of the effect of merger and acquisition on shareholders wealth and profitability of Nigeria. The specific objectives of the study was; to determine if there is significant difference between the turnover of selected companies pre and post-merger and acquisition,to ascertain if There is a significant difference between profit after tax of selected companies pre and post-merger and acquisition, to determine if there is a significant difference between shareholders wealth pre and post-merger and acquisition. The data used in this work were secondary data sourced from Statistical bulletin and journals. Statistical PackagesforSocialSciences(SPSS22.0)was used in the analysis of the data. The objectives of the study were achieved using regression analysis. Based on the research conducted, the following findings were made:'[hereissignificantdifferencebetween turnover of selected companies pre and post-merger and acquisition. This showed that the company has experienced a huge turnover after the post-merger and acquisition. A strong and positive correlation(R-0.934) exists between profit after tax of the selected companies pre and post-merger and acquisition and there is a significant difference between the profit after tax of the selected companies pre and post-merger and acquisition.Thisimpliedthatafterthepost• merger and acquisition, the companies experienced a great profit after taxation. There is a significant difference between the shareholders wealth of the selected companies pre and post-merger and acquisition. This implies that after the post-merger and acquisition, their shareholders wealth of the companies increased it nmensely.The findings recommendations that merger and acquisition should be resorted to a sit promotes shareholders and profitability performance especially in the case of a business that is not performing well, mergers and acquisition should be adopted us available alternative organizations than failing and folding up with costly consequences to their owners and economy which increases unemployment. 

CHAPTER ONE:INTRODUCTION

1.1 ﾿ Background of the Study ﾿

1.2 ﾿ Statement o fthe Problem ﾿ 3

1.3 ﾿ Objectives of the Study ﾿ 4

1.4 ﾿ Research Questions ﾿ 4

1.5 ﾿ Research Hypotheses ﾿ 4

1.6 ﾿ Significance of the Study ﾿ 5

1.7 ﾿ Scope of the Study ﾿ 5

1.8 ﾿ Definition of Terms ﾿ 6

CHAPTER TWO:REV1EW OF LlTERATURE

2.1 Conceptual Framework                                                                                             7

2.1.1 Definition of Merger                                                                                                 ..,

2.1.2 Acquisition ﾿ 8

2.1.3 Motives for Merger and Acquisition ﾿

2.1.4 Types of Merger ﾿ 9

2.1.5 Benefit of Merger and Acquisition ﾿ 10

2.1.6    Reasons of Failure of Merger and Acquisition ﾿ 14

2.1.7    The Relationship of Mergers and Acquisitions and the Shareholders Value ﾿

2.2 Theoretical Framework ﾿

2.3      Empirical Literature ﾿

CHAPTER THREE:RESEARCH METHODOLOGY ﾿

3.1      Research Design                                                                                                        20

3.2    Area of Study ﾿ 20

3.3     Population of the Study ﾿ 20

3.4   Sources of Data and Data Collection method ﾿ 21

3.5    Method of Data Analysis ﾿ 21

3.6   ModelS pecification ﾿ 21

3.6.1 Regression Analysis model ﾿

3.7 Validity of Instrument ﾿

3.8    Reliability of Instrument ﾿

CHAPTER FOUR:DATPRESENTATION,ANALYSIS AND INTERPRETATION

4.1        Presentation and Analysis of Data. ﾿ 23

4.2        Test of Hypothesis ﾿

4.3      Discussion of Findings ﾿

CHAPTER FIVE:SUMMARY OF FINDINGS,CONCLUSION AND ﾿ RECOMMENDATlONS ﾿

5.1 Summary of Findings ﾿ 28 ﾿

5.2 Conclusion ﾿ 28

5.3 Recommendations ﾿ 29

5.5 Area for Further Study ﾿ 29

5.6   Limitations of the Study ﾿ 30

References ﾿

Appendix1:Data for the Analysis ﾿

Appendix 2:Regression Analysis Results ﾿