Browsing by Author "Nkrumah,Daniel Harrison"

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    Impact of mergers and acquisitions on banks' performance in Ghana.
    (KNUST, 2016-06) Nkrumah,Daniel Harrison
    ABSTRACT Due to increasing competition, new financing possibilities and changes in regulation all over the world, mergers and acquisitions (M&A) have become popular strategic tools for growth. Every merger or acquisition, whether large or small, has inherent complexities that need to be clearly understood and properly addressed to ensure that value is created. Due to globalization and expansion of economies, firms will have to consolidate to be able to compete on international scale and be able to undertake big ticketing transactions. Some sectors such as finance, telecommunication and petroleum have been transformed since 1994 by the occurrence of very large-scale mergers and acquisitions. The larger the economy, the more likely to have more companies that could merge with each other and this creates a rippling effect which improves the economy. As such developing countries, of which Ghana is no exception, are now embracing the concept of pursuing acquisitions and mergers as a means of sustainable growth. This study analyzes beyond a single case study as it assessed the mergers of Ecobank Ghana and The Trust Bank (TTB), SocieteGenerale and SG SSB and Access bank and Intercontinental bank to evaluate whether the mergers of these groups has led to improvement in their performance. A financial analysis of the three merged banks before and after the merger was undertaken in this study to ascertain whether the merger has made the group better off than operating individually. Data were collected from the published annual reports and accounts of the selected banks and were subsequently uses STATA and Statistical Package for Social Sciences (SPSS) for the data analysis t-test statistics through statistical package for social sciences. It was found that the post-mergers and acquisitions‟ period was more financially efficient than the pre￾mergers and acquisitions period. iii iv However, to increase banks financial efficiency, the study recommend that banks should be more aggressive in their profit drive for improved financial position to reap the benefit of post mergers and acquisitions bid.