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Mergers and Acquisition in Nigeria: Analysis of Performance Pre and Post Consolidation

Umoren, A. O. and Adetula, D. T. and Olokoyo, F. O. (2007) Mergers and Acquisition in Nigeria: Analysis of Performance Pre and Post Consolidation. Lagos Journal of Banking, Finance & Economic Issues, 1 (1). pp. 151-166. ISSN 978-36813-1-1

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The banking reform pronounced on the 6th of July, 2004 had been a major wave towards a diversified, strong and reliable banking sector in Nigeria. This paper examined the mega banks by evaluating their performance two years pre-consolidation and a year post-consolidation. It examined the impact of consolidation on performance and considers if there had been considerable improvement on their profitability, liquidity and solvency. In this study, we analyzed the performance ratio of a sample of seven (7) mega banks; which composed of nineteen ( 19) constituent banks pre-merger. A descriptive analysis ofthese performance ratios was carried out. Correlation Analysis was used to test the impact of the performance ratios on the return on equity. We found that, on average, bank mergers resulted to improved performance. The paper therefore suggests that the bank management should embrace broad product strategies, which could help in generating more income for the banks. They should also embrace diversification and financial innovation in order to produce new products and services.

Item Type: Article
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Law, Arts and Social Sciences > School of Management
Depositing User: Mr Solomon Bayoko
Date Deposited: 23 Oct 2014 10:35
Last Modified: 23 Oct 2014 10:35

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