IDEAS home Printed from https://ideas.repec.org/a/jfr/afr111/v5y2016i2p10.html

Mergers and Acquisitions: The Trend in Business Environment in Nigeria

Author

Listed:
  • Omoye, A. S.
  • Aniefor, S .J.

Abstract

This paper focused on merger and acquisition in Nigerian business environment. Its specific objectives are to determine implication of merger and acquisition on profitability, leverage buy- out and shareholders’ wealth. It is a longitudinal survey covering time period of six years (Pre-merger and acquisition- 2007-2009 and Post-merger and acquisition- 2010-2012). Historical data were obtained from the financial statement and accounts of Access Bank PLC which merged with Intercontinental Bank PLC. Data collected are evaluated and analysed using McNemar test. This study reveals that merger and acquisition has influence on profitability, leverage buy-out and shareholders’ wealth. It concluded that merger and acquisition can stimulate economic growth and development of any nation. Hence, recommended that merger and acquisition should be strategically be employed by firms to improve profitability, shareholders wealth and offset accumulated leverage for the interest of dispersed stakeholders and government should create the enabling environment that can enhance merger and acquisition in Nigeria.

Suggested Citation

  • Omoye, A. S. & Aniefor, S .J., 2016. "Mergers and Acquisitions: The Trend in Business Environment in Nigeria," Accounting and Finance Research, Sciedu Press, vol. 5(2), pages 1-10, May.
    • Handle: RePEc:jfr:afr111:v:5:y:2016:i:2:p:10
    as

    Download full text from publisher

    File URL: https://www.sciedupress.com/journal/index.php/afr/article/download/9075/5802
    Download Restriction: no
    File URL: https://www.sciedupress.com/journal/index.php/afr/article/view/9075
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:hum:wpaper:sfb649dp2007-051 is not listed on IDEAS
    2. Tseveen Gantumur & Andreas Stephan, 2012. "Mergers & acquisitions and innovation performance in the telecommunications equipment industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 21(2), pages 277-314, April.
    3. Thomas Straub, 2007. "Reasons for Frequent Failure in Mergers and Acquisitions," Springer Books, Springer, number 978-3-8350-9637-0, August.
    4. Lynn E. Browne & Eric Rosengren, 1988. "The merger boom: an overview," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 22-32.
    5. Jensen, Michael C, 1988. "Takeovers: Their Causes and Consequences," Journal of Economic Perspectives, American Economic Association, vol. 2(1), pages 21-48, Winter.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oghuvwu, M. E. & Omoye, A.S, 2016. "Mergers, Acquisitions and Corporate Performance: The Balanced Scorecard Approach," Accounting and Finance Research, Sciedu Press, vol. 5(4), pages 1-63, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexandridis, G. & Antypas, N. & Travlos, N., 2017. "Value creation from M&As: New evidence," Journal of Corporate Finance, Elsevier, vol. 45(C), pages 632-650.
    2. Febi Jensen & Hans Lööf & Andreas Stephan, 2020. "New ventures in Cleantech: Opportunities, capabilities and innovation outcomes," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 902-917, March.
    3. Sang V. Nguyen & Michael Ollinger, 2006. "Mergers and Acquisitions and Productivity in the U.S. Meat Products Industries: Evidence from the Micro Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 606-616.
    4. Clara Graziano & Annalisa Luporini, 2003. "Board Efficiency and Internal Corporate Control Mechanisms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(4), pages 495-530, December.
    5. Kalpana Tokas & Kartik Yadav, 2023. "Foreign Ownership and Corporate Social Responsibility: The Case of an Emerging Market," Global Business Review, International Management Institute, vol. 24(6), pages 1302-1325, December.
    6. Wang, Daojuan & Hain, Daniel S. & Larimo, Jorma & Dao, Li T., 2020. "Cultural differences and synergy realization in cross-border acquisitions," International Business Review, Elsevier, vol. 29(3).
    7. Estévez-Mendoza, Carlos & Montoro-Sánchez, Ángeles, 2024. "Exploring the relationship between innovation and corporate governance," Technological Forecasting and Social Change, Elsevier, vol. 209(C).
    8. Aguilera, Ruth V. & Desender, Kurt A. & Kabbach de Castro, Luiz Ricardo, 2011. "A Configurational Approach to Comparative Corporate Governance," Working Papers 11-0103, University of Illinois at Urbana-Champaign, College of Business.
    9. Hans Schenk, 1996. "Bandwagon mergers, international competitiveness, and government policy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 23(3), pages 255-278, October.
    10. Ollinger, Michael & Nguyen, Sang V., 2003. "Empirical Evidence On The Motives For Mergers And Acquisitions In Eight Food Industries," 2003 Annual meeting, July 27-30, Montreal, Canada 22176, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Yang, Qing Gong & Temple, Paul, 2012. "Reform and competitive selection in China: An analysis of firm exits," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 286-299.
    12. Koke, Jens, 2002. "Determinants of acquisition and failure: evidence from corporate Germany," Structural Change and Economic Dynamics, Elsevier, vol. 13(4), pages 457-484, December.
    13. Pu Liu & Yingying Shao, 2022. "Innovation and new business formation: the role of innovative large firms," Small Business Economics, Springer, vol. 59(2), pages 691-720, August.
    14. Basnet, Anup & Davis, Frederick & Walker, Thomas & Zhao, Kun, 2021. "The effect of securities class action lawsuits on mergers and acquisitions," Global Finance Journal, Elsevier, vol. 48(C).
    15. David Margolis, 2006. "Should employment authorities worry about mergers and acquisitions?," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 5(2), pages 167-194, August.
    16. Henry Hansmann & Daniel Kessler & Mark B. McClellan, 2003. "Ownership Form and Trapped Capital in the Hospital Industry," NBER Chapters, in: The Governance of Not-for-Profit Organizations, pages 45-70, National Bureau of Economic Research, Inc.
    17. Cremers, K.J. Martijn & Litov, Lubomir P. & Sepe, Simone M., 2017. "Staggered boards and long-term firm value, revisited," Journal of Financial Economics, Elsevier, vol. 126(2), pages 422-444.
    18. repec:jle:journl:170 is not listed on IDEAS
    19. Philip R. P. Coelho & James E. McClure & John A. Spry, 2003. "The Social Responsibility of Corporate Management: A Classical Critique," American Journal of Business, Emerald Group Publishing Limited, vol. 18(1), pages 15-24, April.
    20. Weiss, Christoph R. & Thiele, Holger D., 2002. "Diversifikation und Wachstum landwirtschaftlicher Unternehmen," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 51(03), pages 1-8.
    21. Germano Mendes Paula & João Carlos Ferraz & Mariana Iootty, 2002. "Economic Liberalization And Changes In Corporate Control In Latin America," The Developing Economies, Institute of Developing Economies, vol. 40(4), pages 467-496, December.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:afr111:v:5:y:2016:i:2:p:10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sciedu Press (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.