ANALYSIS OF FACTORS CAUSING MERGER AND ACQUISITION: CASE STUDY OF BANKING SECTOR IN PAKISTAN
Download| Volume 12 Issue 1 2016 | |
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| Author(s): |
Atif Hassan
Rizwana Bashir
Rabia Shakir
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| Abstract | The trend of mergers and acquisitions is increasing in the Pakistani banking sector. The purpose of this study is to find out the basic factors which beguile banks for the merger and acquisition. In this study researcher took the sample size 2 as two merger cases one happens in the year 2010 (Faysal Bank & RBS) and one in 2007 (SAMBA & CCB). The researcher critically analyzed the pre and post-merger performance of FAYSAL BANK & RBS and SAMBA &CCB with the help of five financial ratios, Net interest margin ratio, Gross margin ratio, ROE, Debt ratio, Debt to equity ratio. The researcher utilized the t-test for testing the hypothesis. This study has adopted exploratory research as its first research technique which helped us in clarifying the research problem. Many constraints have been faced during this study for example bankers were hesitating to fulfill the questionnaires. The result of this study suggests that after merger and acquisition firms can increase synergy and can decrease the risk of solvency but merger and acquisition is not significant for the shareholders’ wealth (the result will change with the different case). This study acquires the knowledge about the emerging trend of merger and acquisition and in future implement this knowledge in an effective way. In addition to that, this study will provide information that why companies decide on mergers and acquisitions. |
| Keywords | Banking Sector of Pakistan, Merger and Acquisition, Merger in Banking Sector, Acquisition in Banking Sector. |
| Year | 2016 |
| Volume | 12 |
| Issue | 1 |
| Type | Full Length Paper |
| Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | IBT Journal of Business Studies | Publisher Name | ILMA University | Jel Classification | - | DOI | http://dx.doi.org/10.46745/ilma.jbs.2016.12.01.19 | ISSN no (E, Electronic) | 2409-6520 | ISSN no (P, Print) | 2416-8393 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Manuscript Processing | Blind Peer Reviewed | Format | Paper Link | http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/12.1/19.pdf | Page | 328-346 |