MERGER AND ACQUISITION ADOPTION AND FINANCIAL PERFORMANCE OF LISTED COMMERCIAL BANKS IN NIGERIA

Abstract

This study examined the effect of merger and acquisition on the performance of listed commercial banks in Nigeria. Specifically, the paper examined the extent to which the adoption of merger and acquisition has contributed to the growth level of the total assets, gross earnings per share (ESP) and profitability of listed selected commercial banks in Nigeria. Ordinary Least Square Technique was employed on the secondary data extracted from annual reports and financial statements of the selected banks (First City Monument Bank, Eco Bank and Access Bank) over a period of twelve years (2010 - 2021) estimate the data and tested the formulated hypotheses. The findings of the study showed that adoption of Merger and Acquisition has a positive impact on the growth level of the total assets, earnings per share and profitability of list commercial banks in Nigeria. Against this backdrop, the study recommended that Merger and Acquisition should be resorted to as it promotes growth especially in the case of business that is not performing well an also should be adopted as a viable alternative to organizations than failing and folding up with costly consequences to their owners and the economy