ABSTRACT

The objective of this work was to primarily evaluate the effect of merger and acquisition on the return on asset and the return on equity of Fidelity Bank Plc Nigeria. To achieve this, research questions and hypotheses were formulated. The analytical techniques used to answer such questions and just i5' the stated hypotheses was simple regression analysis. Equity was used as a proxy for merger and acquisition (independent variable,) while return on equity and return on asset (dependent variables) were used to determine the growth and survival of this firm. This was based on data from the firm's published annual report and accounts for a period of fourteen years. From the result of the first analysis, the adjusted R2of the pre-merger of both ROA (return on asset) and ROE (return on equity) were greater than that of the post-merger and their F-statistic (Prob.) were greater than the 5% level of significance, which gave rise to the conclusion that merger and acquisition has no significant effect on firms growth and survival. But since this firm or bank did not have any structural break in its operation, a second analysis was conducted using the TROA (total return on asset) and TROE (total return on equity) for the period of fourteen years (i.e. 2000-2013,). From the result of the second analysis, the F-statistic (Prob.) of both TROA (total return on asset) and TROE (total return on equity) were lesser than the 5%level of significance and their adjusted R2were far more greater than that of the pre and post merger of the first analysis which brings to the conclusion that merger and acquisition helps firms' to grow and survive by increasing the earnings of the firm 's asset (ROA,) and the profits of its equity (ROE). Finally, it was recommended that firms should be encouraged to merge especially those at the verge of liquidation and also the cost of acquisition and mergers should be reduced so as to ensure the maximization of return on asset and return on equity.