Title: MERGER AND ACQUISITION: THE SYNERGETIC EFFECT OF EQUITY OPERATIONAL - COST AND LOAN ON EARNINGS (CASE STUDY OF UNITED BANK OF AFRICA AND STANDARD TRUST BANK)
Abstract: The study is on the effect of operational cost, equity and loan/ advances on the earning of the merged banks. The study compared the premerger and post-merger combined results of the merged banks. Since the basic low liquidity poor credit trading and high operational cost was the bane of merged banks before the 2005 forced combination fostered on the banks. The secondary data collected was analyzed using the SPSS version10, the t-statistic, correlation coefficient and basic linear regression models were used. It was discovered that equity and loan positively affect earning in both the pre and post merger period. Operational cost negatively effect the earning in the pre-merger period while it lowly affect earning in the post merger period. The synergetic effect of merger was found positive on the firms in the post-merger period. It was recommended that banks should reduce their operational cost in the post merger period to improve their earnings and concentrate more on their fundamental business.
Publication Year: 2010
Publication Date: 2010-01-01
Language: en
Type: article
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