Title: The effects of mergers and acquisitions on business performance in Nigerian banking industry: an empirical analysis

Authors: Olawumi Dele Awolusi

Addresses: Department of Business Administration and Marketing, School of Management and Social Sciences, Babcock University, Ilishan-Remo, Ogun State, P.M.B 21244, Ikeja, Lagos, Nigeria

Abstract: This paper provides a holistic view of the mergers and acquisitions (M&As) implementation process, by reviewing the hard and soft factors that cause success and failure for M&As implementation, as well as, examine the impact of M&As on perceived business performance measures (PBPM) in Nigerian banking industry. The aim was achieved through an empirical study involving a survey on 19 Nigerian banks involved in mergers and/or acquisitions. Using SEM, multivariate analyses were mathematically represented in a single equation, and findings from this study confirmed that M&As had significant association on PBPM. The equation could be used by banks, and companies alike, to compose strategies to optimise their management of business performance and mergers and/or acquisition programmes. The model was able to provide predictive implications on business performance, given the activities of key factors manifesting successful M&As, hence, these factors could be adopted by companies wishing to undertake M&As programme in Nigeria. Nonetheless, to improve business performance management, companies could control their M&As programme.

Keywords: consolidation; mergers; acquisitions; structural equation modelling; Nigeria; SEM; holistic views; implementation processes; hard factors; soft factors; success; failure; perceived business performance measures; multivariate analysis; single equations; business strategies; acquisition programmes; predictive implications; key factors; performance management; efficiency management; service sector organisations.

DOI: 10.1504/IJBPM.2012.047301

International Journal of Business Performance Management, 2012 Vol.13 No.3/4, pp.366 - 385

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 11 Jun 2012 *

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