MERGER AND ACQUISITION STRATEGY FOR GROWTH, IMPROVED PERFORMANCE AND SURVIVAL IN THE FINANCIAL SECTOR (A STUDY OF STERLING BANK, ACCESS BANK AND ECO BANK)

ABSTRACT

This study aim at analyzing the effect of merger and acquisitions on the performance and growth of financial sector within the span of 2005-2012. The broad objective of this research work is to examine if there is a significant difference in the pre and post mergers and acquisitions periods of banks in terms of gross earnings and also to examine if there is a significant difference in the pre and post mergers and acquisitions periods of banks in terms of profits after tax and net assets. The data were collected from the annual report of three banks namely Sterling Bank Nigeria plc, Access Bank plc and Eco Bank of Nigeria plc for the period of 2005-2012. The Ordinary  Least Square (OLS) were employed using E-view Statistical Method. The result of the analysis shows that there is a significant difference in the pre and post mergers and acquisitions periods of banks in terms of gross earnings and also that there is a significant difference in the pre and post mergers and acquisitions periods of banks in terms of profits after tax and net asset. Based on these findings, it is recommended that government should strengthen the financial sector by encouraging merger and acquisitions in Nigerian banks.

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