Impact of Mergers and Acquisitions on the Performance of Commercial Banks in Pakistan

Abstract

The objective of this research study is to examine the impact of merger and acquisition on performance of banks. This study is basically a quantitative research to give an insight into the trends that has increased the merger and acquisition. An empirical investigation has been done to study the patterns of merger and acquisition in banking sector of Pakistan. Past studies focused mainly on the developed countries and there is less work done on merger and acquisition in less developed countries like Pakistan. For the purpose of data collection annual reports are used. To evaluate the effect of M&A on the profitability of banking sector of Pakistan data is collected from the KSE (Karachi stock exchange). The dependent variable is performance of bank and independent variable is merger and acquisition.

Keywords: Banks, Performance, Return on Equity, Return on Assets.