Corporate reputation and goodwill in merger and acquisitions: study of the consolidation exercise in the banking industry in Nigeria

Abstract

Businesses contemporarily do not success the owners, thus are sold, acquired and merged with others. These activities create dis-satisfaction among shareholders (current and potential) hence cause decline in their welfare. This was evident during the consolidation exercise in the banking industry in Nigeria 2000-2010. Based on this, this work x-rayed the impact of goodwill and corporate reputation during merger and acquisition and established linear relationship between goodwill and corporate reputation as well as the need to manage both (goodwill and corporate reputation) for improvement in the welfare of stake and shareholders. The exercise was executed based on the use of structured questionnaire, interviews and the study of annual records of firms in the banking industry in Nigeria 2000- 2010. It recommends proper identification of variables vital for the creation and sustenance of personal and corporate good will as built around corporate reputation; the optimization of relationship between corporate personnel and the organization for reduction in labour turnover rate as index of dis-functional publicity and corporate reputation.