Impact of Mergers and Acquisitions on Earnings and Net Assets per Share Indices of Companies in Nigeria

UDEH, Sergius Nwannebuike and IGWE, Nick Ngozi (2014) Impact of Mergers and Acquisitions on Earnings and Net Assets per Share Indices of Companies in Nigeria. European Journal of Business and Management, 6 (9). ISSN 2222-2839

Text 11752-14108-1-PB.pdf Download (302kB)

Abstract

This paper examines the impact of mergers and acquisitions on earnings and net asset per share of companies in Nigeria. Data used for the study were collected from published consolidated financial statements of four of the companies that combined between 1984 and 2004 with one or two of the companies listed on the floor of the Nigeria Stock Exchange (excluding banks). Since the companies merged at different dates, care was taken to ensure collection of data for a total period of 20 years, 10 years before and 10 years after each combination. Data were analyzed using regression and t-test statistic. The study reveals that while mergers and acquisitions had significant impact on earning per share in 25 percent of the four companies, they produced a similar effect on net assets per share in 50% of the companies investigated. The paper concludes that mergers and acquisitions had significant impact on earnings and net assets per share indices of a cross section of Nigerian companies. It recommends that stakeholders could employ mergers and acquisitions to enhance capital accumulation and growth of investment in Nigeria. Keywords: Mergers and acquisitions, earnings per share, net assets per share, micro-investors, macro-investors, Nigeria.

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General) L Education > L Education (General)
Divisions:	Faculty of Management and Social Sciences
Depositing User:	GOUNI ICT
Date Deposited:	23 May 2018 19:57
Last Modified:	07 Aug 2018 10:14
URI:	http://eprints.gouni.edu.ng/id/eprint/168

Actions (login required)

View Item