Impact of Merger and Acquisition Practice on Job Stress: Evidence from Nepal

Abstract

M&A has become one of the key aspects of corporate change and transition. It has also become a source of uncertainly and stress for everyone. Nepal Rastra Bank has extensively introduced the policy of M&A in the banking and financial sector of Nepal. The main aim of this study is to examine the impact of M&A practices on job stress of employees and to suggest some policies to manage such job stress. This uses both descriptive and analytical approaches to research. A set of a self-administered questionnaire used to explore the impact of M&A practice on the job stress of employees. A total of 500 questionnaires (125 in each merged bank) were distributed to all level managers, branch managers, and other staff of various departments of the commercial banks involved in big M&A practice in Nepal. Only 351 (70.20%) of total distributed questionnaires were returned as a source of data. A five-point Likert scale is used for measuring responses. This study uses analytical statistical tools such as mean, standard deviation, regression analysis, and ANOVA test for analyzing data. The results indicate that individual-related problems, policies & procedure-related problems, job-related problems, and organization-related problems are the key stressors in M&A practice. The results also reveal that all these problems have a significantly positive impact on employee job stress after M&A practice. This study also suggests several policies for managing and reducing the job stress of employees after M&A practices.

Keywords: Acquisition, Employees, Job, Merger, Stress

DOI: 10.7176/EJBM/12-24-01

Publication date:August 31^st 2020