A comparative study of banking sector performance before and after merger & acquisition: Evidence from Pakistan.

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Abstact

The purpose of this study is to make a comparative analysis of banking sector performance before and after the Merger and Acquisition (M&A). The analysis is based on the accounting measures to test the impact of pre and post M&A on the financial performance of banks in Pakistan during the period 2004-2015. The results reveal that liquidity, profitability and investment ratios of the banks are positively and significantly increased the performance after M&A. However, it also indicates that the solvency ratios are not statistically significant after M&A. In the light of these results, this study suggests implications for both theory and practice and also recommends ideas for future research.

Keywords: Mergers and Acquisitions, Financial Ratios, Banking Industry of Pakistan

JEL Classification: G21, G30, G34

Received: 14.12.2018

Accepted: 23.01.2019

How to cite: Muhammad, H., Waqas, M., & Migliori, S. (2019). A comparative study of banking sector performance before and after merger & acquisition: Evidence from Pakistan. Corporate Governance: Search for the Advanced Practices, 275-292. https://doi.org/10.22495/cpr19p15