alexa POST-CONSOLIDATION EFFECT OF MERGERS AND ACQUISITIONS ON NIGERIA DEPOSIT MONEY BANK
Business & Management

Business & Management

Arabian Journal of Business and Management Review

Author(s): POSTCONSOLIDATION EFFECT OF M

Abstract Share this page

Prior to the consolidation exercise in 2005, the banking industry was filled with a large number of weak, small banks that had low capital bases and were not performing their duties as the main financial intermediaries in the economy. The consolidation exercise which was spearheaded by the CBN governor, Charles Soludo raised the recapitalization of deposit money banks to a minimum of N25 billion naira by December 31, 2005 with mergers and acquisitions (M&As) as one of the strategies the banks could adopt to meet this requirement. By the end of the consolidation exercise, the number of banks had reduced from 89 to 25 while the capital base and reliability of the banks that survived increased. This study was carried out to find out the challenges faced by the banks during and after the exercise, the performance of these banks post-consolidation and if mergers and acquisitions has in anyway affected the banks and if so, in what ways. The panel data regression technique was used in the analysis and we found that M&As affect banks’ performance but does not affect banks’ cost of equity capital. We recommend that the management of Nigerian banks has to be efficient and effective in allocating available resources so as to stay relevant in the now competitive banking industry so as to enjoy the full benefits that come with mergers and acquisitions.

  • To read the full article Visit
  • Open Access
This article was published in European Journal of Business and Management and referenced in Arabian Journal of Business and Management Review

Relevant Expert PPTs

Relevant Speaker PPTs

Relevant Topics

Peer Reviewed Journals
 
Make the best use of Scientific Research and information from our 700 + peer reviewed, Open Access Journals
International Conferences 2017-18
 
Meet Inspiring Speakers and Experts at our 3000+ Global Annual Meetings

Contact Us

 
© 2008-2017 OMICS International - Open Access Publisher. Best viewed in Mozilla Firefox | Google Chrome | Above IE 7.0 version
adwords