dc.contributor.author | Koech, Kenneth K | |
dc.date.accessioned | 2013-11-27T08:02:18Z | |
dc.date.available | 2013-11-27T08:02:18Z | |
dc.date.issued | 2013-11 | |
dc.identifier.citation | Degree Of Master Of Business Administration | en |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/60683 | |
dc.description | A research project submitted in partial
fulfillment of the requirement for the award of
The degree of master of business administration,
School of business, university of Nairobi | en |
dc.description.abstract | Recent economic reforms in Kenya have significantly improved its macroeconomic
indicators and financial sector. Banks have witnessed significant merger and
acquisition activity as a result of these reforms in attempts to privatize and strengthen
the banking sector. This study measures the performance implications of Kenyan
banks that have undergone mergers or acquisitions during the period 2000-2010. This
is done by calculating their return on equity, Return on Asset, Debt to Equity and
Capital Adequacy Ratio, ratios in order to determine the degree of success of banking
reforms in strengthening and consolidating the Kenya banking sector. Secondary data
from audited annual reports of accounts of the population of interest and CBK bank
supervision annual reports were used. The analysis of the financial institutions
performance for pre and post-merger was collected for 4 years pre and post-merger.
The research findings indicate that banks that have undergone deals of mergers or
acquisitions have shown significant improvements in performance and return on
equity and Return on Asset when compared to their performance before the deals.
CAR significantly improved signifying that mergers and acquisitions internal strength
to withstand losses in case of emergency improved. Debt to equity ratio increase clear
indication that leverage increased. It was concluded that mergers and acquisitions
have had clear positive performance implication of mergers and acquisition of banks
in the Kenyan banking sector. These findings do support the process of financial
consolidation and banking reforms observed in Kenya, and provide evidence to
support their constructive role in improved bank profitability and economic
restructure. | en |
dc.language.iso | en | en |
dc.publisher | University of Nairobi | en |
dc.title | Performance implications of mergers and Acquisitions in the banking industry in Kenya | en |
dc.type | Thesis | en |
local.publisher | School of Business | en |