Impact Of Merger And Acquisition On Corporate Performance (A Study Of Access Bank Plc)

ABSTRACT

The objective of this work is primarily to determine the impact of mergers and acquisitions on corporate performance. To achieve this research, questions and hypothesis were formulated and data obtained from secondary sources including the company's published account for the 8 years period of 2001 to 2009. The analytical technique employed to answer the study questions and test the stated hypothesis was the student t-test technique. The t-values of the profit after tax, net assets and earnings per share were significant at 5% level of significance, indicating that mergers and acquisitions significantly had positive effect on the firm's profit after tax, net assets and earnings per share. It is concluded that since mergers and acquisition increase firm's profitability which is evident in the improvement of the profits, net assets and earnings per share firms should therefore be encouraged to merge as it is an effective method of corporate restructuring and improved performance.