ISSN: 2222-6990
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The purpose of this paper is to examine the post-mergers and acquisitions financial performance of banks listed on the Ghana Stock Exchange using a value-based approach (proxied by economic value added (EVA), market value added (MVA) and cash value added (CVA). A cross-sectional survey was employed comprising four (4) acquirer banks listed on Ghana Stock Exchange. Data were analyzed using descriptive statistics and regression analyses. The acquisitions in the Ghanaian Banking Sector resulted in value addition regarding EVA. The acquisition was successful with MVA. The banking sector recorded an abysmal performance in CVA over the acquisition period which shows that the banks face liquidity problems. The overall post-acquisition financial performance of the banks of negative GH?56,845,508 is an indication that the acquisition has not resulted in value additions to shareholders. The overall fall in value lends to the massive loss in CVA. The study rejects the first hypothesis that there is a significant positive effect of EVA on MVA of acquirer banks listed on the Ghana Stock Exchange. The results indicate a significant positive effect of EVA on CVA of acquirer banks listed on the Ghana Stock Exchange. The study also confirms that MVA has a significant positive effect on CVA of acquirer banks listed on the Ghana Stock Exchange. The study employed only a single research methodological approach, therefore future research could be undertaken using a mixed approach and triangulate to compare findings. Furthermore, the findings from the present study are cross-sectional, considering the limitations there in, a longitudinal approach should be explored. Emphasis should be place on value-based financial performance metrics that indicate whether shareholder value is maximised or destroyed post acquisition. This will help practitioners make legitimate decisions and conclusions that can foster business growth.
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In-Text Citation: (Apreku-Djan et al., 2022)
To Cite this Article: Apreku-Djan, P. K., Ahiale, F. A., Ameyaw, F., Owusu, M., & Apreku, I. K. O. (2022). Post-Merger and Acquisition Financial Performance of Banks Reconceptualised: Towards A Collaboratively Oriented Value-Based Financial Performance Metrics. International Journal of Academic Research in Business and Social Sciences, 12(5), 873 – 902.
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