A Survey of the Implication of Merger and Acquisition on the Nigerian Banking Sector
Loading...
Date
2015-06-30
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
IJECM.co.uk
Abstract
The paper surveyed the implication of merger and acquisition on the Nigerian Banking Industry
using ECO Bank Nig. Plc. as a case study. The aim of the paper was to find out how the merger
and acquisition strategy has fared in improving banks’ performance and instilling more
confidence in the mind of depositors. Both primary and secondary data were used for the study.
The primary data were collected through the use of questionnaire while the secondary ones
were collected by extraction from the banks’ records and the record of the Central Bank of
Nigeria (CBN). The primary data were analysed with the use of tables, percentages and the
paired sample t –test, while the secondary data were analysed with the use of regression and
ANOVA. It was discovered through the test and the hypotheses that the bank surveyed has
fared better in terms of service delivery and overall performance after merger and acquisition
than before merger and acquisition. It was therefore recommended that the monetary authorities
should make the strategy an ongoing phenomenon so as to boost the capital base of the
Nigerian banks and to instil confidence in the depositors by guiding against fund diversion
among the big players in the Nigerian Banking Industry. This will enhance stability in the system
and improve economic development of Nigeria.
Description
Keywords
Merger and Acquisition, Assets, Banking Industry, Profit after tax, Capital base