Effect of Merger And Acquisition on the Performance of Commercial Banks in Nigeria:- Okonkwo Chinonso

ABSTARCT

This research work focused on the effects of merger and acquisition on the performance of commercial banks in Nigeria. The study examined the extent to which bank size, bank financial characteristic, banks market share and bank deposit relates with return on equity, return on asset and profit margin of banks in Nigeria, The study used secondary source of information and multiple regression technique were adopted in analyzing this model. The findings from the research reveals that bank size and market shares have a significant relationship with return on equity while bank financial characteristics has no significant relationship with return on assets, board size and bank financial characteristics has no significant relationship with return on assets, that board size has a significant relationship with profit margin while bank financial characteristics and bank market share has no significant relationship with profit margin. Based on these findings, the researcher recommends that bank consolidation in the financial market must be market driven to allow for efficient process and finally, researchers should begin to develop a new framework for financial market stability as opposed to banking consolidation policy.