Open AccessThe Effect of Mergers and Acquisitions on the Financial Performance of Micro Finance Banks
Author(s) -
Muhammad Akbar Ali Ansari,
Azhar Bilal,
Ali Junaid Khan,
Muhammad Tahir
Publication year - 2021
Publication title -
review of education, administration and law
Language(s) - English
Resource type - Journals
eISSN - 2708-3667
pISSN - 2708-1788
DOI - 10.47067/real.v4i4.202
Subject(s) - mergers and acquisitions , business , return on assets , finance , financial system , profit margin , financial ratio , retained earnings , earnings per share , earnings , profitability index , debt
The basic purpose of this study to examine effect of mergers & acquisitions on the financial performance of Pakistan's micro finance banks. Financial institutions must change their business strategies as a result of rapid technological advancements because they play such an important part in any country's economy. Several national and international studies on mergers and acquisition banking have been conducted to investigate the various elements. In this study, 13 financial ratios were calculated, which shows that there is no significant effect of mergers & acquisitions on the financial performance of microfinance banks in Pakistan. There are indicators that measured through financial ratios and the comparison is made using a paired T-test. Three years of data, two years before and one year after mergers & acquisitions, are taken as a sample. Out of 13 ratios, 11 ratios are examined: Investment to Total Assets (ITA), Deposit to Total Assets (DTA), Return on Assets (ROA), Earnings per Share (EPS), and Net Profit Margin (NPM).