American Journal of Business and Society
Articles Information
American Journal of Business and Society, Vol.6, No.1, Mar. 2021, Pub. Date: Jan. 22, 2021
The Impact of Mergers and Acquisitions in Ghanaian Banking Sector: Societe Generale Ghana and UT Bank Perspective
Pages: 21-38 Views: 1080 Downloads: 1123
Authors
[01] Francis Kofi Sobre Frimpong, Department of Accounting and Finance, Accra Institute of Technology, Accra, Ghana.
[02] Eleazer Fianko Ofei, Department of Accounting and Finance, Accra Institute of Technology, Accra, Ghana.
[03] Eric Armah-Bempong, Department of Accounting and Finance, Accra Institute of Technology, Accra, Ghana.
[04] Eric Hope, Department of Accounting, Kaaf University College, Accra, Ghana.
Abstract
Ghana has seen a greater number of mergers and acquisitions in the banking industry over the last 20 years as compared to the telecommunication sector. The subject is about the desire of firms to acquire others or join forces together. Some of these transactions have been successful; others, unfortunately, less so. Studies done on mergers and acquisitions have not conclusively established whether or not Ghanaian banks benefit from mergers and acquisitions. This study was conducted to evaluate the impact of mergers and acquisitions on the Ghanaian banking sector with reference to SG-SSB and UT bank. The objective of the study was to determine the contribution of mergers and acquisitions on the financial performance of banks, assess the post-merger and acquisition impact on shareholders’ value and examine the effect of mergers and acquisitions on the profitability of financial institutions. A sample of two (2) firms was used for this study out of the population of over fifteen (15). The main data for this study came from financial reports from the chosen banks and the Bank of Ghana’s website. It has been found that mergers and acquisitions had a major impact on both profitability and return on shareholder’s equity, however, there was no significant impact on financial performance after the merger and acquisition.
Keywords
Mergers and Acquisition, Financial Performance, Return on Shareholders, Equity, Return on Equity, Profitability, Gross Operating Margin (GOM), Net Operating Margin (NOM)
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