Optimizing the Capital Structure of Acquiring Banks in Nigeria through Merger and Acquisition Schemes
The study examined whether or not merger and acquisition schemes can optimize the capital structure of acquiring listed banks in Nigeria. The study used secondary source of data; and the data were gathered from the audited financial statements of the sampled banks. The study focused on banks indus...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Danubius University
2023-10-01
|
| Series: | Journal of Danubian Studies and Research |
| Subjects: | |
| Online Access: | https://dj.univ-danubius.ro/index.php/JDSR/article/view/2387/2601 |
| Summary: | The study examined whether or not merger and acquisition schemes can optimize the capital
structure of acquiring listed banks in Nigeria. The study used secondary source of data; and the data were
gathered from the audited financial statements of the sampled banks. The study focused on banks industry
and covered nineteen (19) years from 2004 to 2022 to select ten (10) banks out of total population of
fifteen (15) acquiring banks based on the available data using targeted sampling technique. The data
collected were analyzed using multiple regression model of fixed effect, random effect and poled ordinary
least squares. Finding from the research disclosed that the coefficient of financial synergy (0.0487) is
positive and has a significant effect (p=0.3612>0.05) in optimizing the banks’ capital structure; while the
beta value of realized profit (−1.962) is negative and insignificant effect (p=0.0001<0.05) in optimizing
the capital structure of the acquiring banks in Nigeria. The study concluded that gaining more financial
synergy through the merger and acquisition schemes will optimize the capital structures of the acquiring
banks, while any profit on realization through the business combination may not optimize the capital
structures of the acquiring banks in Nigeria. |
|---|---|
| ISSN: | 2284-5224 |