THE EFFECT OF MERGER ON DEPOSIT MONEY BANKS PERFORMANCE IN THE NIGERIAN BANKING INDUSTRY (Published)
The study objective gives an insight into the effectiveness of economic policy reforms in the Nigerian banking industry. This study examines the impacts of merger on deposit money banks performance in Nigeria between 2000 and 2009. The period was characterized by financial deregulation, the Global economic crisis, and bank restructuring programs. The panel data ordinary least squares approach is the methodology employed to investigate if there is any significant effect on the performance of banks from the pre to the post merger periods, in order to detect whether bank mergers produce any performance gains in the Nigerian banking industry. The evidence shows that merger created synergy as indicated by the statistically significant increasing post-merger financial performances although banks should not jump at any merging opportunity that offers itself because the exercise is not an opportunistic one. We therefore recommend that merger being a relatively new phenomenon in the Nigerian banking environment should be given more encouragement by the regulatory authorities.
Keywords: Deposit Money Banks, Merger, Performance
Assessing the role of behavioural elements in budgeting and budgetary control process of public universities in Ghana: Case of University of Education (Review Completed - Accepted)
The study examined the role of budget behavioral element in the budget and budgetary control process of public universities in Ghana using University of Education as the study area. It therefore seeks to explore the behavioral elements of budgeting process in the study area and determine behavioral elements relationship with employees’ performance and commitment to corporate goal. The study employed the quantitative research methodology utilizing a cross sectional research design. It used purposive and simple random sampling techniques to select 110 employees of the University as respondents. Data was analyzed using SPSS 16. The findings of the study showed that there was a significant positive relationship between behavioral elements of budgeting and employees’ performance and commitment to corporate goal. The relationship between budget participation and employees’ performance was positive though not significant connoting that budget participation alone cannot significantly influence performance. Commitment to corporate goal had significant positive relationship with performance in the University. The finding implies that management should make budgeting processes more participative to enhance employee commitment to goal which can lead to improved performance
Keywords: Behavioural Elements, Budget, Commitment To Goal, Employees, Performance
A Delve into Performance of Sukuk (Islamic Bonds) and Conventional Bonds Issued by PLCs in Malaysia (Published)
The purpose of this study is threefold; (i) to analyze the performance of the public listed companies (PLCs) that issues sukuk (also known as Islamic bonds) as compared to conventional bonds. (ii) to validate the relationship between bond facets and firms’ performance and (iii) to evaluate the effects of independent variables in terms of size of issuance, bond’s rating, coupon rate, types of instruments and tenor of each issuance towards firm’s performance. The study used a secondary data for a total of N= 966 issuance which are gathered from Bank Negara info Bond website, and Rating Agency Malaysia (RAM) for such a bond facets. Data from Thompson Data Stream and Bloomberg are utilized to represent firm’s performance proxies (N=970) from 2002 until 2009. The preliminary result revealed by multivariate regression and independent T test was shown there is a statistically significant relationship between bond facets with firm’s performance. Most of the public listed issuer was issued sukuk as compared to conventional bonds during study periods.
Keywords: Bond facets, Conventional Bonds, Performance, Public Listed Companies, Sukuk
Post Merger And Acquisition And Performance Of Deposit Money Banks In Nigeria (Review Completed - Accepted)
Mergers and acquisitions as a phenomenon is implemented to strengthen the banking system, embrace globalization, improve healthy competition, exploit economies of scale, adopt advanced technologies, raise efficiency and improve profitability. The world globalization has led to world financial crisis which has significantly affected the banking industry and has consequently increased the need for mergers and acquisitions (M&A) in the consolidation of deposit money banks. One of the major policies introduced to solve these financial problems is by consolidation through mergers and acquisitions. This study explored the impact of post mergers and acquisitions on the performance of deposit money banks in Nigeria. The study adopted a cross sectional survey design with a total population of 22 deposit money banks in Nigeria. A sample of 10 banks was randomly selected from the above population. The study used the secondary sources to extract data from the Annual Reports of the selected banks for a period of five (5) years (2008-2012). Simple regression analysis technique was used for data analyses. The study revealed that as at the end of year 2012, the average capital base of the sampled banks in the post Merger period showed a total of (N 1.76 Trillion). This is an improvement from the recent work of Oghojafor (2012) in which average capital base stood at (N 6,358.76 Million). The study revealed an insignificant but positive relationship between post mergers and acquisitions capital base (PMACB) and dividend per share (DPS) with (P=0.985 i.e. P>0.05), earnings per share (EPS) with (P=0.803 i.e. P>0.05), return on assets (ROA) with (P=0.859 i.e. P>0.05) and return on capital employed with (P=0.666 i.e. P>0.05). This study concluded that post merger and acquisition has no significant effect on dividend per share of shareholders, their earnings per share, return on assets and return on capital employed. In a broad perspective, this study further revealed that there is a reduction in the degree of global banking crisis over the years and thus reduction in the general banking failure particularly in Nigeria. This is made possible through mergers and acquisition process which consecutively resulted in increased capital base of banking industry in Nigeria. The study recommended that equal considerations should be given to both micro and macro prudential guidelines, in order to ensure sound and stable banking system. Also, deposit money banks should incorporate into their banking policy other factors such as credit discipline, corporate culture, and management information system so as to ensure increase in their earnings ability.
Keywords: Acquisition, Banking Sector, Merger, Performance