Analysis of Pre and Post Merger and Acquisition Financial Performance of Banks in Pakistan

Information Management and Business Review Vol. 6, No. 4, pp. 177-190, Aug 2014

14 Pages Posted: 29 Aug 2018

See all articles by Qamar Abbas

Qamar Abbas

Bahauddin Zakariya University

Ahmed Imran Hunjra

University of Waikato; Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Rashid Saeed

Bahauddin Zakariya University

Ehsan Ul Hassan

Sukkur Institute of Business Administration

Muhammad Shahzad Ijaz

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Date Written: 2014

Abstract

Merger and Acquisition is a strategy adopted by the organizations globally to meet the needs of dynamic business environment. This strategy also has much importance in Pakistan mostly in banking sector. Therefore, the objective of the study is to assess the impact of M&A on the financial performance of banks in Pakistan. The accounting and financial data of 10 banks were used in this study. Data was taken from the financial statement analysis (FSA) by State Bank of Pakistan from the period of 2006- 2011. For the analysis of pre and post Merger and Acquisition performance 15 financial ratios were used in the study. To compare the results Paired sample t-Test was used to measure the significant difference between pre and post M&A financial performance. The overall results show that there is no significant difference in financial performance. It is concluded that there is insignificant difference between pre and post M&A performance of banks in Pakistan.

Keywords: Merger and Acquisition, Banking Sector of Pakistan, Financial Performance, Profitability Ratio, Liquidity Ratio, Leverage Ratio

Suggested Citation

Abbas, Qamar and Hunjra, Ahmed Imran and Saeed, Rashid and Ul Hassan, Ehsan and Ijaz, Muhammad Shahzad, Analysis of Pre and Post Merger and Acquisition Financial Performance of Banks in Pakistan (2014). Information Management and Business Review Vol. 6, No. 4, pp. 177-190, Aug 2014. Available at SSRN: https://ssrn.com/abstract=3229716

Qamar Abbas

Bahauddin Zakariya University ( email )

Bosan Road
Multan, PA Punjab 60800
Pakistan

Ahmed Imran Hunjra (Contact Author)

University of Waikato ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS) ( email )

Muree Road Rawalpindi
Shamsabad, Punjab 44000
Pakistan
00923457162527 (Phone)

Rashid Saeed

Bahauddin Zakariya University

Bosan Road
Multan, PA Punjab 60800
Pakistan

Ehsan Ul Hassan

Sukkur Institute of Business Administration

Airport Road
Sukkur
Pakistan

Muhammad Shahzad Ijaz

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS) ( email )

Rawalpindi, 44000
Pakistan

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