Corporate Mergers, Acquisitions and Value Creation of Firms in Nigeria

Abstract

This study seeks to scrutinize the effect of corporate mergers, acquisition and value creation of firms in Nigeria and to identify areas of synergy. The study employed secondary data collected from the bank’s annual report. The data collected covered a period of fourteen years, which is divided into the pre and post-merger periods of seven years respectively. The study adopted panel least square estimation technique and other estimation for the analysis. The study finds out that shareholders’ funds and earnings per share are significant in determining the return on asset. Also shareholders’ funds and total asset values are statistically significant in the pre-merger periods in determining return on asset. That profit after tax is statistically significant in explaining financial efficiency in the pre-merger periods; the study concludes that there was increase in the shareholders’ funds for the post-merger periods.