Abstract
The objective of this paper is to analyse the relationship between the pre and post merger and acquisition performance of banking industry in Nigeria. Aggregate banking data ranging from 1981 to 2013 were analysed for evidence of correlation between the pre-merger banking performance and post-merger banking performance in Nigeria. The results obtained from the descriptive analysis of the pre and post merger and acquisition periods shows that the banking industry performance is significantly better after the merger than before the merger. Furthermore, the Pearson correlation coefficients show that absence of relationship between the pre and post merger period. Overall, the results show that there is significant difference in the performance of Nigerian banking industry in the pre merger and post merger and acquisition periods.
Highlights
The relevance of banks in the economy of any nation cannot be over emphasized
Our descriptive statistics involve plotting of time series graph and computation of mean, standard deviation, skewness, kurtosis, and Jarque-Bera statistic for the level and first difference of the pre and post-merger and acquisition series of private sector deposit and banking sector net assets, which serve as the proxy for banking industry performance in Nigeria
This suggests that the pre and post-merger and acquisition periods in the Nigerian banking history may not be the same
Summary
The relevance of banks in the economy of any nation cannot be over emphasized. They are the cornerstones of the economy of a country. The economies of all market-oriented nations depend on the efficient operation of complex and delicately balance system of money and credit. Banks are an indispensable element in these systems. They provide the bulk of the money supply as well as the primary means of facilitating the flow of credit. It is submitted that the economic wellbeing of a nation is a function of advancement and development of her banking industry (OBADAN, 1997)
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