EFFECT OF MERGER AND ACQUISITION ON THE PERFORMANCE OF BANKING INDUSTRY IN NIGERIA

  • Sunday Adeniyi OLASEHINDE
  • Festus Taiwo SOLANKE
  • Olawale Emmanuel KUKOYI
  • Tobi Ayomide OGUNSINA
Keywords: Board Behavior, Corporate Restructuring, Restructuring, Takeover & Target Firm.

Abstract

The study investigated the relationship between effect of merger and acquisition on the banking industry in Nigeria with the use of secondary data. The sample size selected was five quoted commercial bank in Nigeria for 2011-2020 financial years with the use of descriptive and inferential statistics research design analysis on data collected from Nigerian exchange group. The estimation result showed that merger and acquisition had a positive and significant effect on return on assets of deposit money banks in Nigeria which ensured judicious use of deposit money banks asset in realization of profit. Also, it was found that merger and acquisition had a positive but insignificant effect on earnings per share and return on equity of deposit money banks in Nigeria. The study concluded that merger and acquisition on the banking industry in Nigeria had significant relationship with return on assets, earnings per share and return on equity of deposit money banks in Nigeria and recommended that merger and acquisition on the banking industry in Nigeria should be added to bank’s policy and vision for the purpose of ensuring total compliance.
JEL: Acquisitions, Bankruptcy, Corporate Default, Corporate Distress, Corporate Governance, Insolvency, Liquidation & Restructuring.

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Published
2023-12-26