The Role and Effect of Merger and Acquisation in Bank Recapitalization in Nigeria

INTRODUCTION Merger can be defined as the unite of companies; the joining together of two or more companies or organisations and An Acquisition can be defined as the proceed of acquiring something According to the Encarta Dictionaries. According to answers.com, Recapitalization is restructuring a companys debt and equity mixture, most often with the aim of making a companys capital structure more stable. Essentially, the make involves the exchange of one form of financing for another, such as removing preferred sh ars from the companys capital structure and refilling them with bonds. Recapitalization in Nigeria banking sector, has built a solid foundation for Nigerian banks to compete favourably with their counterpart world over. Recapitalization causes unemployment due to downsizing, conjugation and acquisition, it causes deflation as more money is raked from peoples hand (through sales of shares) In order to build the new capital base. It also leads to live crisis of the banking sector (I.e. the unethical lendings without collateral as the banks has so much money to give to nobody as the recapitalization is aimed at attracting foreign investors that cries of the countrys weak monetary/capital market.

BACKGROUND OF THE STUDY GLOBAL VIEW Abstract We study the transmission line market valuation of mergers and acquisitions in the European banking industry. Based on a stress of very large deals observed from 1988 to 1997 we enumeration that, on average, at the announcement time the size-adjusted combined surgery of both the bidder and the target is statistically significant and economically relevant. Although our sample shows a great deal of cross-sectional variation, the general results are mainly driven by the significant positive defective returns associated with the announcement of domestic bank to bank deals and by crop diversification of banks into insurance. On the contrary, we found that M&A with securities and break up with foreign... If you want to get a full essay, order it on our website: Orderessay

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