“Effect of Merger and Acquisition on Performance of Banks in Nigeria: A Study of Access Bank Pic, Zenith Bank, First Bank, Guarantee Trust Bank:-Annabel Okafor I
ABSTRACT
The study determined the effect of mergers and
acquisition on the performance of banks in Nigeria, the specific objectives are
to evaluate the effect of merger and acquisition on return on equity, return on
asset and net profit margin, the study adopted ex post facto research design
and extracted data from cross section of banks over a period 10 years, equity
and firm size were jointly used as proxies for merger and acquisition and
served as joint in dependent variable while return on equity, return on asset
and net profit were each employed on a 3 model framework. Based on the nature
of data extracted, the panel least squares methdd of data analysis was engaged
to investigate the relationship of the variables. The result of the 3 models
provided evidence for the selection ofthe random effect regression. It was
found that mergers and acquisition have significant effect on return on asset
and return on equity. The study therefore concludes that mergers and
acquisition significantly affects performance of banks and recommends that
Banks should judicious expend funds on profitable investments that would yield
return to shareholders, Banks should expand their businesses in locations where
the assets would be used in full capacity and be efficient in operations to
generate sufficient profit, Management ofbanks should locate branches in
profitable locations.
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ANNABEL, O (2024). “Effect of Merger and Acquisition on Performance of Banks in Nigeria: A Study of Access Bank Pic, Zenith Bank, First Bank, Guarantee Trust Bank:-Annabel Okafor I . Repository.mouau.edu.ng: Retrieved Nov 22, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-merger-and-acquisition-on-performance-of-banks-in-nigeria-a-study-of-access-bank-pic-zenith-bank-first-bank-guarantee-trust-bank-annabel-okafor-i-7-2
OKAFORIHUAKU, ANNABEL. "“Effect of Merger and Acquisition on Performance of Banks in Nigeria: A Study of Access Bank Pic, Zenith Bank, First Bank, Guarantee Trust Bank:-Annabel Okafor I " Repository.mouau.edu.ng. Repository.mouau.edu.ng, 09 Aug. 2024, https://repository.mouau.edu.ng/work/view/effect-of-merger-and-acquisition-on-performance-of-banks-in-nigeria-a-study-of-access-bank-pic-zenith-bank-first-bank-guarantee-trust-bank-annabel-okafor-i-7-2. Accessed 22 Nov. 2024.
OKAFORIHUAKU, ANNABEL. "“Effect of Merger and Acquisition on Performance of Banks in Nigeria: A Study of Access Bank Pic, Zenith Bank, First Bank, Guarantee Trust Bank:-Annabel Okafor I ". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 09 Aug. 2024. Web. 22 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-merger-and-acquisition-on-performance-of-banks-in-nigeria-a-study-of-access-bank-pic-zenith-bank-first-bank-guarantee-trust-bank-annabel-okafor-i-7-2 >.
OKAFORIHUAKU, ANNABEL. "“Effect of Merger and Acquisition on Performance of Banks in Nigeria: A Study of Access Bank Pic, Zenith Bank, First Bank, Guarantee Trust Bank:-Annabel Okafor I " Repository.mouau.edu.ng (2024). Accessed 22 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-merger-and-acquisition-on-performance-of-banks-in-nigeria-a-study-of-access-bank-pic-zenith-bank-first-bank-guarantee-trust-bank-annabel-okafor-i-7-2