Authors : Appah Ebimobowei and John M. Sophia
Abstract: This study focused on the efficiency effects of mergers and acquisitions in the Nigerian banking industry. Data was collected from the financial statements of all the sampled banks within the study period. The population of the study comprised all the (24) banks operating in the Nigerian banking industry as at 31st December 2010. Simple random sampling technique was used to select the (10) banks used for the analysis. About 3 year (2003-2005) pre merger and acquisition mean return on equity was compared with the 3 years (2006-2008) post merger and acquisition mean. Using descriptive analysis and paired sample t-test statistics, the findings revealed that there is no significant difference between the return on equity of banks pre and post merger and acquisition. On the basis of the findings, we recommend among others that mergers and acquisition in the banking industry in Nigeria must be driven by market forces to give room for efficiency and effectiveness and researchers should develop new framework and models for banks performance, stability and growth as opposed to merger and acquisition.
Appah Ebimobowei and John M. Sophia, 2011. An Analysis of the Efficiency Effects of Mergers and Acquisitions in the Nigerian Banking Industry. Pakistan Journal of Social Sciences, 8: 135-141.