The effect of mergers and acquisition on the financial performance: a case study of Hong Leong Bank Berhad/ Nurazurain Aziz

Merger and acquisition can take place in most of the company either in banking institution or private company but the only question is either it can lead to a better performance of bank or it gets worst. In this research paper, the changes to the financial performance of Hong Leong Bank after merged...

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Bibliographic Details
Main Author: Aziz, Nurazurain
Format: Student Project
Language:English
Published: 2017
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/57347/1/57347.pdf
https://ir.uitm.edu.my/id/eprint/57347/
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Summary:Merger and acquisition can take place in most of the company either in banking institution or private company but the only question is either it can lead to a better performance of bank or it gets worst. In this research paper, the changes to the financial performance of Hong Leong Bank after merged with EON Bank Group in 2011 are being evaluated. The five (5) years pre and five (5) years post-merger data is used to test the significant. In this research paper, the data are collected from DataStream, Library Universiti Teknologi MARA (UiTM). Method uses in this study are regression test to test significant between independent variable with dependent variable. The dependent variable is profitability ratio and the independent variable is financial ratio performance which is liquidity ratio, leverage ratio, activity ratios and market ratio. Meanwhile, Paired- T-test is use to test either post-M&A give impact to the financial performance of Hong Leong Bank Berhad with the help SPSS software. The findings show that only EPS have a positive significant impact towards ROE. In other hand, results from paired t-test show mergers have negatively impact towards EPS, CR and TATO. However, does not affect ROE and DR.