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Standard Research Journal of Business Management Vol3 (4): 072-079, September 2015
Copyright 2015 Standard Research Journals

 

 

Research Article

 

Impact of Mergers and Acquisition (MA) on performance of Ghana’s banking industry

 

King A Salami (PhD)

 

Department of Banking and Finance, Methodist University College, Dansoman Campus, Ghana

 

Author E-mail: k.salami@yahoo.co.uk; Tel: 0233-208183142

 

Accepted 27 May 2015

Abstract

Mergers and Acquisitions (MA) have been of serious concern in financial markets all over the world. The topic is about the desire of firms to acquire others, or join forces together. Some of these transactions have been successful; others unfortunately less so. The rationale for the current study is to investigate the impact of MA on performance of Ghana’s banking industry, with emphasis on Societe Generale Bank Ltd. The main data for our study consist of official documents of the bank and the Bank of Ghana like their annual reports and other financial information of several years. These are supplemented by discussions with selected senior officials of the bank. Adopting the Financial Performance (FP) Approach, analysis of data using Microsoft excel package was done. Important findings include: Societe Generale appears to have chalked some modest positive financial performance. Secondly, the results appear to suggest lack of any evidence of costs reduction and operational efficiency. But the study notes that success of the merged company depends on probability of occurrence of staff hostility; insufficient preparation for the evolution; inability to integrate personnel and systems; and irreconcilable differences in corporate cultures and management, all of which must be effectively handled to maximize success of MA activities in the banking industry.

Keywords: mergers and acquisitions, costs reduction, operational efficiency, financial performance, structure- conduct- performance (SCP) paradigm, efficiency hypothesis
 

 

Stand. Res. J. Bus. Manag

Vol. 3 No. 4

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