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Effects of merger and acquisition on the performance of selected Commercial Banks in Nigeria

Author

Listed:
  • ONAOLAPO Adekunle Abdul-Ramon

    (Department of Management and Accounting,Ladoke Akintola University of Technology, Ogbomoso)

  • AJALA Oladayo Ayorinde

    (Department of Management and Accounting,Ladoke Akintola University of Technology, Ogbomoso)

Abstract

The paper examined the effects of merger and acquisition on the performance of selected commercial banks in Nigeria with greater emphasis on gross earnings, profit after tax and deposit profile as financial efficiency parameters. For this paper, seven Nigerian commercial banks were selected using convenience and judgmental sample selection methods. Data were collected from the published annual report and accounts of the selected banks and were subsequently analyzed appling regression analysis through statistical package for social sciences. The results showed that post merger and acquisition period was more financially improved than the pre merger and acquisition period.Therefore, the study recommended that banks should be more proactive in driving for profit for enhanced financial performance to reap the benefit of mergers and acquisition bid in the Nigeria banking sector.

Suggested Citation

  • ONAOLAPO Adekunle Abdul-Ramon & AJALA Oladayo Ayorinde, 2012. "Effects of merger and acquisition on the performance of selected Commercial Banks in Nigeria," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 2(7), pages 148-157, December.
    • Handle: RePEc:mir:mirbus:v:2:y:2012:i:7:p:148-157
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    References listed on IDEAS

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    1. repec:bla:econom:v:64:y:1997:i:254:p:317-29 is not listed on IDEAS
    2. Thomas Straub, 2007. "Reasons for Frequent Failure in Mergers and Acquisitions," Springer Books, Springer, number 978-3-8350-9637-0, January.
    3. Berger, Allen N. & Demsetz, Rebecca S. & Strahan, Philip E., 1999. "The consolidation of the financial services industry: Causes, consequences, and implications for the future," Journal of Banking & Finance, Elsevier, vol. 23(2-4), pages 135-194, February.
    4. Altunbas, Yener & Marqués, David, 2008. "Mergers and acquisitions and bank performance in Europe: The role of strategic similarities," Journal of Economics and Business, Elsevier, vol. 60(3), pages 204-222.
    5. Rhoades, Stephen A., 1993. "Efficiency effects of horizontal (in-market) bank mergers," Journal of Banking & Finance, Elsevier, vol. 17(2-3), pages 411-422, April.
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    Cited by:

    1. Alhassan Musah & Mohammed Abdulai & Hilda Baffour, 2020. "The Effect of Mergers and Acquisitions on Bank Performance in Ghana," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 7(1), pages 36-45.

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