EFFECT OF MERGERS AND ACQUISITION ON THE ORGANIZATIONAL PERFORMANCE OF SELECTED COMMERCIAL BANKS IN KENYA
Abstract
Globalization and stiff competition propel commercial banks to embrace various survival mechanisms in order to remain relevant and post superior performance. In an attempt to alleviate the scenarios of inferior performance, commercial banks incorporated various transformative changes such as mergers and acquisition. This current study therefore investigated the effect of mergers and acquisition on organizational performance of selected commercial banks in Kenya. Synergy theory was reviewed so as to support this research project. The project embraced a descriptive research design whereas data collection was via primary means on the sample considered. The target population under consideration constituted of 195 top level managers. The study sample size comprised 131 units of analysis which were generated through the stratified random sampling techniques. This research employed primary data which was quantitative in nature and it was collected using questionnaires. Validity as well as reliability of the study tools was conducted through pilot testing before actual data collection and any adjustments made so as to warrant quality and reliable data collection process. Analysis of data was through SPSS. The test statistics results from the regression model indicated that merger and acquisition had a positive significant relationship with organizational performance. Finally, the researcher recommended that policy formulating bodies such as the central bank of Kenya should pass statutes as well as encourage commercial banks to embrace Merger and Acquisition.
Key Words: Mergers and Acquisition, Commercial Banks
CITATION: Irungu,M. N., & Wainaina, L. (2023). Effect of mergers and acquisition on the organizational performance of selected commercial banks in Kenya. The Strategic Journal of Business & Change Management, 10 (3), 533 – 540.
DOI: http://dx.doi.org/10.61426/sjbcm.v10i3.2724
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i3.2724
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