scholarly journals EFFECT OF MERGERS AND ACQUISITIONS STRATEGIES ON FINANCIAL PERFORMANCE OF FINANCIAL SERVICES SECTOR

2017 ◽  
Vol 1 (1) ◽  
pp. 18
Author(s):  
Dr. Agnes Ogada ◽  
Dr. George Achoki ◽  
Dr. Amos Njuguna
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Performance ◽  
Significant Relationship ◽  
Financial Services ◽  
Panel Data Analysis ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Primary Data ◽  
Services Sector ◽  
Financial Services Sector

 Purpose: The purpose of this study was to establish the effect of mergers and acquisitions strategies on financial performance of firms in the financial services sector in Kenya.Methodology: The study adopted a mixed methodology research design. The study population included all the 51 merged financial service institutions in Kenya. Purposive sampling was used. Primary data was obtained from questionnaires and a secondary data collection template was also used. The researcher used quantitative techniques in analyzing the data. Descriptive analysis for the study included the use of means, frequencies and percentages.  Inferential statistics such as correlation analysis was also used. Panel data analysis was also applied. Further, a pre and post merger analysis was used.Results: Cost efficiency was found to have a positive and significant effect on financial performance of merged institutions. Diversification had no significant effect on financial performance of merged institutions. Synergy had a significant relationship with financial performance of merged institutions. Board size had a significant relationship with financial performance of merged institution and there was a significant relationship between the moderating effect of economic growth and financial performance of merged institutions.Unique Contribution to Theory, Practice and Policy: The study recommended that policy makers (government) should be able to create or promote the enabling environment for facilitating mergers and acquisitions that concerns infrastructure provision, as a way of achieving cost reduction that could motivate similar mergers in other institutions in Kenya, stakeholders are to identify where their most immense profit pools lie and focus on improving those units responsible for them, the management of the financial services institutions should embrace diversification and financial innovation on product strategies as this will help in generating more income for the banks.

MODERATING EFFECT OF ECONOMIC GROWTH ON FINANCIAL PERFORMANCE OF MERGED INSTITUTIONS

2017 ◽  
Vol 1 (1) ◽  
pp. 38
Author(s):  
Dr. Agnes Ogada ◽  
Dr. George Achoki ◽  
Dr. Amos Njuguna
Keyword(s):  
Economic Growth ◽  
Financial Performance ◽  
Financial Services ◽  
Panel Data Analysis ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Moderating Effect ◽  
Primary Data ◽  
The Government ◽  
To Come

Purpose: The purpose of the study was to determine the moderating effect of economic growth on financial performance of merged institutions Methodology: The study adopted a mixed methodology research design. The study population included all the 51 merged financial service institutions in Kenya. Purposive sampling was used. Primary data was obtained from questionnaires and a secondary data collection template was also used. The researcher used quantitative techniques in analyzing the data. Descriptive analysis for the study included the use of means, frequencies and percentages.  Inferential statistics such as correlation analysis was also used. Panel data analysis was also applied. Further, a pre and post merger analysis was used.Results: There was a significant relationship between the moderating effect of economic growth and financial performance of merged institutions.Unique contribution to theory, practice and policy: The government and Central Bank of Kenya to come up with strategies and policies to protect the financial services sector due to its immense contribution to the economy of the country by formulating policies aimed at controlling the effects of rapid fluctuations of the macro economic factors and their effects on the sector.

scholarly journals Effect of Synergy on Financial Performance of Merged Financial Institutions in Kenya

2016 ◽  
Vol 8 (9) ◽  
pp. 199
Author(s):  
Agnes Ogada ◽  
Amos Njuguna ◽  
George Achoki
Keyword(s):  
Financial Performance ◽  
Financial Services ◽  
Panel Data Analysis ◽  
Secondary Data ◽  
Primary Data ◽  
Services Sector ◽  
Merger Analysis ◽  
Significant Difference ◽  
Before And After ◽  
Trends Over Time

Mergers and Acquisitions deals that create value constitute at least one or a combination of financial and operational synergy. This paper investigates the effect of synergy on financial performance of merged institutions in the financial services sector in Kenya. The paper adopted a mixed research design, pre and post-merger secondary data was collected from 40 (forty) institutions in the Kenyan financial services industry that had concluded their merger processes by 31 December 2013. Financial synergy was proxied using the liquidity ratio while operating synergy was measured using growth in sales. Primary data was used to explain the results of the secondary data. Panel data analysis was used to determine the change in the study variables and trends over time between 2009 and 2013, event window (pre-merger and post-merger) analysis was used to test for any significant difference in performance means before and after merger as a result synergy, while regression analysis was used to determine the relationship between synergy and profitability. Results show that there is a positive relationship between performance, operating synergy and financial synergy, and that there was significant improvement in performance post-merger. From these findings, the study recommends that institutions should critically evaluate the overall business and operational compatibility of the merging institutions and focus on capturing long-term financial synergies as this has a positive effect on the performance.

scholarly journals EFFECT OF DIVERSIFICATION ON THE FINANCIAL PERFORMANCE OF MERGED INSTITUTIONS

2016 ◽  
Vol 1 (2) ◽  
pp. 91
Author(s):  
Agnes Ogada ◽  
George Achoki ◽  
Amos Njuguna
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Performance ◽  
Panel Data Analysis ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Financial Service ◽  
Primary Data ◽  
Merger Analysis ◽  
Financial Soundness ◽  
Study Population

Purpose: The purpose of the study was to assess the effect of diversification on the financial performance of merged institutions.Methodology: The study adopted a mixed methodology research design. The study population included all the 51 merged financial service institutions in Kenya. Purposive sampling was used. Primary data was obtained from questionnaires and a secondary data collection template was also used. The researcher used quantitative techniques in analyzing the data. Descriptive analysis for the study included the use of means, frequencies and percentages.  Inferential statistics such as correlation analysis was also used. Panel data analysis was also applied. Further, a pre and post merger analysis was used.Results: Diversification had no significant effect on financial performance of merged institutions.Unique contribution to theory, practice and policy: The study findings call for a re-assessment of the literature on diversification. Further research is necessary to study why sometimes the diversification-performance relationship is positive, others negative, and often quadratic. Further research is needed to investigate whether diversification effects on performance depends on the industries considered. This study recommends that companies with a weak and unstable capital base should seek to consolidate their establishments through mergers and acquisitions. Through mergers and acquisitions, these companies will be able to extend their market share and revenue base hence increase their profitability. In addition, mergers and acquisition leads to a higher CAR which improves the financial soundness of the companies.

scholarly journals EFFECT OF SYNERGY ON THE FINANCIAL PERFORMANCE OF MERGED INSTITUTIONS

2016 ◽  
Vol 1 (1) ◽  
pp. 126
Author(s):  
Agnes Ogada ◽  
George Achoki ◽  
Amos Njuguna
Keyword(s):  
Financial Performance ◽  
Panel Data Analysis ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Financial Service ◽  
Primary Data ◽  
High Performing ◽  
Merger Analysis ◽  
Study Population

Purpose: The purpose of the study was to determine the effect of synergy on the financial performance of merged institutions.Methodology: The study adopted a mixed methodology research design. The study population included all the 51 merged financial service institutions in Kenya. Purposive sampling was used. Primary data was obtained from questionnaires and a secondary data collection template was also used. The researcher used quantitative techniques in analyzing the data. Descriptive analysis for the study included the use of means, frequencies and percentages.  Inferential statistics such as correlation analysis was also used. Panel data analysis was also applied. Further, a pre and post merger analysis was used.Results: Synergy had a significant relationship with financial performance of merged institutions.Unique contribution to theory, practice and policy: The study recommended that institutions should critically evaluate the overall business and operational compatibility of the merging institutions and focus on capturing long-term financial synergies. They should increase their scope to create high performing supply chains with significant long-term upside that provide sustained value for customers and stakeholders.

scholarly journals EFFECT OF BOARD SIZE ON THE FINANCIAL PERFORMANCE OF MERGED INSTITUTIONS

2016 ◽  
Vol 1 (1) ◽  
pp. 107
Author(s):  
Agnes Ogada ◽  
George Achoki ◽  
Amos Njuguna
Keyword(s):  
Financial Performance ◽  
Panel Data Analysis ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Financial Service ◽  
Primary Data ◽  
Board Members ◽  
Board Size ◽  
Merger Analysis ◽  
Study Population

Purpose: The purpose of this study was establishing the effect of board size on the financial performance of merged institutions.Methodology: The study adopted a mixed methodology research design. The study population included all the 51 merged financial service institutions in Kenya. Purposive sampling was used. Primary data was obtained from questionnaires and a secondary data collection template was also used. The researcher used quantitative techniques in analyzing the data. Descriptive analysis for the study included the use of means, frequencies and percentages.  Inferential statistics such as correlation analysis was also used. Panel data analysis was also applied. Further, a pre and post merger analysis was used.Results: Board size had a significant relationship with financial performance of merged institution.Unique contribution to theory, practice and policy: It was recommended that, firms are place a remarkable degree of emphasis on the area of corporate governance and to some extent embark on eliminating CEO duality. The study also recommends a board size (6 and 8) for better financial performance. This will reduce the problem of free rider and enhance effective monitoring and decision making. It will also bring about cohesion among the board members.

scholarly journals THE WEAKNESSES OF ALTERNATIVE INSTITUTIONS FOR DISPUTE RESOLUTION IN FINANCIAL SERVICES SECTOR

2021 ◽  
Vol 5 (2) ◽  
pp. 200
Author(s):  
Theresia Anita Christiani ◽  
Chryssantus Kastowo
Keyword(s):  
System Theory ◽  
Dispute Resolution ◽  
Financial Services ◽  
Alternative Dispute Resolution ◽  
Secondary Data ◽  
Legal Culture ◽  
Primary Data ◽  
Services Sector ◽  
Financial Services Sector ◽  
Settlement Of Disputes

There are weaknesses in the Financial Services Authority issued POJK No. 61/POJK/2020 concerning Alternative Dispute Resolution in the financial services sector. It hampered the objectives of the regulation. A concept proposal is needed to overcome the existing weaknesses. This research uses normative juridical analysis.  This research dose on the laws and regulations that apply in Indonesia relating to the settlement of disputes in the financial services sector. This study finds a proposed concept to overcome the weaknesses of Alternative Dispute Resolution in the financial services sector. The proposed idea empowers legal culture, legal substance, and legal culture as legal system theory. This research is limited to study based on secondary data, so there is no primary data.

scholarly journals The Interplay between Board Characteristics, Financial Performance, and Risk Management Disclosure in the Financial Services Sector: New Empirical Evidence from Europe

2021 ◽  
Vol 14 (2) ◽  
pp. 79
Author(s):  
Gratiela Georgiana Noja ◽  
Eleftherios Thalassinos ◽  
Mirela Cristea ◽  
Irina Maria Grecu
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Financial Services ◽  
Structural Equation ◽  
Supervisory Board ◽  
Fiscal Year ◽  
Services Sector ◽  
Board Characteristics ◽  
Financial Services Sector ◽  
Thomson Reuters

This paper empirically evidences the role played by board characteristics (skills, diversity, structure, independence) in supporting risk management disclosure and shaping the financial performance of European companies operating in the financial services sector. We exploit data selected from Thomson Reuters Eikon database in 2020 for the last fiscal year 2019 (FY0) on a longitudinal sample of 144 companies with the head offices in Europe (25 countries). Following an original empirical approach based on two modern financial econometric techniques, namely structural equation modelling (SEM) and network analysis through Gaussian graphical models (GGMs), the research endeavor outlines the decisive importance of an optimal board size, enhanced management skills, upward gender diversity (encompassed by women participation on board management), and structure (mainly a two-tier type, one management board, and a distinctive supervisory board) as fundamentals of risk management strategies, leading to improved financial achievements and a higher profitability for the analyzed companies.

Employees Outlook Regarding Quality and CRM Link for Enriched Competitive Strategy

2020 ◽  
Vol 9 (2) ◽  
pp. 27-47
Author(s):  
Neeta Baporikar
Keyword(s):  
Financial Services ◽  
Competitive Strategy ◽  
Banking Sector ◽  
Business Environment ◽  
Customer Relationship ◽  
Primary Data ◽  
Research Approach ◽  
Services Sector ◽  
Financial Services Sector ◽  
Management Processes

The business environment is dynamic and faces frequent changes driven by macro and micro factors. Due to these changes, businesses are forced to either evolve or exit. Those that evolve choose the path of advancement and are determined to sustain their competitive positions. The financial services sector is one sector that is particularly undergoing changes and banks particularly in this sector face changes from all front. All segments in which banks operate from payment transfers to home loans are under serious pressures due to FinTechs and technology. The banking sector in Namibia is no exception. Hence, adopting a qualitative research approach with content analysis, primary data gathered by questionnaires from Standard Bank employees, the study aims to investigate employees' outlook regarding quality and CRM nexus for enriched competitive strategy in an ever-changing and competitive environment. The findings reveal that quality and customer relationship management processes do influence customers' experiences, satisfaction levels, and loyalty.

scholarly journals ITMA - IT Integration in Mergers and Acquisitions

2017 ◽  
Vol 12 (11) ◽  
pp. 16
Author(s):  
Declan Burke ◽  
Serhiy Kovela
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Services ◽  
Best Practice ◽  
Business Leaders ◽  
Chief Information Officers ◽  
Services Sector ◽  
Financial Services Sector ◽  
It Integration ◽  
Practice Framework

This study aims to identify key information technology (IT) integration issues experienced during mergers and acquisitions (M&A) in the financial services sector. The study proposes an approach to increase the efficiency of such transactions. A comprehensive literature review and case study of a leading financial services organisation is undertaken, comprising of interviews with high ranking IT and business leaders. This research identifies the blueprint for a best practice framework, which Chief Information Officers (CIOs) and IT practitioners can employ to guide execution of their own M&A integration programme.

scholarly journals Settling Inconsistencies Associated with The Genesis of The Financial Services Authority Act

2017 ◽  
Vol 2 (1) ◽  
pp. 36-41
Author(s):  
Theresia Anita Christiani ◽  
Maria Hutapea
Keyword(s):  
Financial Services ◽  
Secondary Data ◽  
Jel Classification ◽  
Financial Service ◽  
Financial Service Authority ◽  
Legal Principles ◽  
Services Sector ◽  
Financial Services Sector ◽  
Legal Principle ◽  
The One

Objective - The FSA Act the establishment of which is mandated by Article 34 of Law No. 23 of 1999 concerning the Bank of Indonesia, was enacted on 22 November 2011. This Act, together with Law No. 3 of 2004, regulates and supervises Indonesia's integrated financial services sector. This article reveals the existence of inconsistencies between the legal terms underlying the establishment of the FSA one the one hand, and the provisions contained in the Financial Service Authority itself, on the other. These inconsistencies also become evident in the light of the 1945 Constitution which facilitated the establishment of the Bank of Indonesia Law. The purpose of this article is to ascertain a method of resolving these inconsistencies associated with the genesis of the Financial Service Authority. Methodology/Technique - The research method used in this article is doctrinal in nature that uses secondary data and information sources as material to analyse the relevant problems. Findings - The research has revealed that the most appropriate method of settling these inconsistencies requires a consideration of the express wording of the FSA. Novelty - This article indicates the need to apply legal principles rather and adjudicatory methods. Type of Paper: Review Keywords: Settlement; Banking; Legal; Principle; Law. JEL Classification: J21, J28, K23.

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