Mergers and acquisitions: analysis of banking sector of Pakistan

The present study initiated to find out the effect of M&A’s on the financial performance of banks. The study was conducted on the banking sector of Pakistan. Five (5) events were taken as a sample of the study. The data of every sample event was collected 3 years before and 3 years after the yea...

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Bibliographic Details
Main Authors: Malik, M. F., Ramakrishnan, S., Khan, S.
Format: Article
Published: American Scientific Publishers 2017
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Online Access:http://eprints.utm.my/id/eprint/75212/
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85032881429&doi=10.1166%2fasl.2017.10001&partnerID=40&md5=7f1b511cbf5ff2a0701d4155c7ac1d9d
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Summary:The present study initiated to find out the effect of M&A’s on the financial performance of banks. The study was conducted on the banking sector of Pakistan. Five (5) events were taken as a sample of the study. The data of every sample event was collected 3 years before and 3 years after the year of M&A’s. The study was based on CRAMEL model. As per the results, capital adequacy, resource allocation, management capabilities and liquidity have insignificant effects on bank’s performance after M&A’s while assets quality and earning quality has significant effects on the bank performance after M&A’s. According to paired sample t-test, capital adequacy, management capabilities, earning quality and liquidity does not show significant difference after M&A’s while assets quality showed significant difference after M&A’s.