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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

The Effect of A Holistic Merger and Acquisition Capability Framework on Value-Based Financial Performance of Banks in Ghana

Paul Kwasi Apreku-Djan, Francis Ameyaw, Samuel Kwabena Ayittah, Frank Ahiale, Maxwell Owusu

http://dx.doi.org/10.6007/IJARAFMS/v12-i2/13355

Open access

The purpose of the study was to investigate the effect of a holistic merger and acquisition capability framework on value-based financial performance of banks in Ghana. The study used a judgmental sampling technique to select four (4) fully licensed and operational commercial banks in Ghana. Multiple regression is used in showing linear relationship between holistic merger and acquisition capability framework (proxied by merger and acquisition motives, pre-merger and acquisition capability strategies, post-merger and acquisition integration capability strategies and managerial competence) and Value-based financial performance (proxied by economic value added; market value-added and cash value-added). The study accepts the null hypothesis that there is a strong positive relationship between holistic merger and acquisition capability framework and EVA, MVA and CVA. It reveals the interdependence of the M&A motives, pre-M&A success capability strategies, post-M&A integration capability strategies and managerial competence on shareholder value maximisation. The findings of the study will enable the passing of a legislation that will compel all managers to be saddled with shareholders’ interest when deciding on any investment activity or financial policy. The government and regulatory authorities should ensure that banks improve upon their reporting framework by disclosing all current and noncurrent assets and liabilities.

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In-Text Citation: (Apreku-Djan et al., 2022)
To Cite this Article: Apreku-Djan, P. K., Ameyaw, F., Ayittah, S. K., Ahiale, F., Owusu, M. (2022). The Effect of A Holistic Merger and Acquisition Capability Framework on Value-Based Financial Performance of Banks in Ghana. International Journal of Academic Research in Accounting Finance and Management Sciences. 12(2), 227 – 258.