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Mergers and Acquisitions: The Trend in Business Environment in Nigeria

Author

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  • 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
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    References listed on IDEAS

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    1. 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.
    2. Thomas Straub, 2007. "Reasons for Frequent Failure in Mergers and Acquisitions," Springer Books, Springer, number 978-3-8350-9637-0, December.
    3. repec:hum:wpaper:sfb649dp2007-051 is not listed on IDEAS
    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.
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    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.

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    More about this item

    JEL classification:

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

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