| dc.description.abstract | Mergers and acquisitions have been very common incidents since the turn of the 20th century.
These are used as tools for business expansion and restructuring. Through mergers the acquiring
company gets an expanded client base and the acquired company gets additional lifeline in the
form of capital invested by the purchasing company. Despite the increasing popularity of
mergers and acquisitions, it was reported that, more than two-thirds of large merger deals failed
to create value for shareholders in the medium term. Thus, the study evaluated the post merger
performance of acquiring firms with reference to commercial banks in Kenya in an attempt to fill
the existing gap that has been left by the previous studies.
This was an event study. An event study is designed to investigate the effect of an event on a
specific dependant variable. The main objective of the study was to evaluate the post merger
performance of acquiring firms with reference to commercial banks in Kenya. The study was
conducted in three stages namely; collection of the data required, calculation and tabulation of
the variables under the study, analysis and interpretation. The data was collected through
verification of the financial statements of four commercial banks considered in the sample and
from merger information available in CBK Handbooks from year 2002 to 2011. | en |
