Int. J. of Accounting and Finance   »   2014 Vol.4, No.4

 

 

Title: Assessment of mergers and acquisitions in GCC banking

 

Authors: Said Gattoufi; Saeed Al-Muharrami; Ghanim Shamas

 

Addresses:
College of Economics and Political Science, Sultan Qaboos University, P.O. Box 20, Muscat, 123 Sultanate of Oman
College of Economics and Political Science, Sultan Qaboos University, P.O. Box 20, Muscat, 123 Sultanate of Oman
Salalah College of Technology, Salalah, 211, Sultanate of Oman

 

Abstract: This study analyses the impact of mergers and acquisitions (M&A) on the performance of commercial banking in GCC countries through analysing a set of ratios. It contributes to the debate about whether mergers and acquisitions improve the performance of the GCC commercial banks. Seven financial ratios were used to investigate the impact of M&A on the operational performance of the merging banks. The sample consists of 42 commercial banks in the GCC countries. The results of financial ratios are mixed; where acquiring banks, target banks and banks that went through joint ventures show mixed results. It was not easy to establish a strong link between banks involved in M&A and the impact of mergers on their operating performance. However, the findings suggest that, on average, M&A activity did not have significant impact on operational performance of banks involved in this type of consolidation.

 

Keywords: mergers and acquisitions; M&A; financial ratios; GCC banks; Gulf Cooperation Council; commercial banking; bank performance.

 

DOI: 10.1504/IJAF.2014.066088

 

Int. J. of Accounting and Finance, 2014 Vol.4, No.4, pp.358 - 377

 

Available online: 28 Nov 2014

 

 

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