Stock Assessment of Industrial Sector long-term Non-Financial Horizontal Mergers and Acquisitions in Nigeria

Authors

  • Mfon. N.U.Akpan (Ph.D) University of Uyo, Akwa Ibom State, Nigeria
  • Sunday Sunday Akpan (Ph.D) University of Uyo, Akwa Ibom State, Nigeria
  • Aye, Aye Khin (Ph.D) Universiti Tunku Abdul Rahman (UTAR)

Keywords:

Stock Performance, Industrial sector, Non-financial M&As, long-term study, Nigeria

Abstract

Stock assessment of Industrial Group long-term Non-Financial Horizontal Mergers and Acquisitions in Nigeria. Regression of the listed stock prices with the Nigeria stock market returns in establishing stock performance. Mann Whitney U-test, a non-parametric test applied in testing the significance of the results for the bidder, target and non-merging firms. The stock performance results of the bidder companies’ non-financial horizontal Industrial sector showed an improvement after 3 years of M&A activities, but when tested not significant. A non-significant decline result in stock performance was obtained also for the Target firm. The non-merging firms’ stock performance three years after M&A improved after M&A but was not significant when tested. This implies that shareholders in the industrial sector did not realize any significant improvement in stock performance value, after M&A activity. Secondly, M&A in the Industrial sector was not beneficial to the merging firms’ shareholders in the long–term in Nigeria. The policy implication is that M&A agencies and supervisory bodies need a total overhaul or review of M&A activities on a long-term procedure in Nigeria. This is because from the literature horizontal M&As are where expected synergistic improvement should come from, but the reverse is the case in Nigeria. The paper investigated the scarcely studied non-financial horizontal Voluntary Industrial Stock performance after M&As that has been existing in Nigeria. Significantly considering the non-merging companies to be able to compare the performance of the bidder and the non-merged companies.

Author Biographies

Mfon. N.U.Akpan (Ph.D), University of Uyo, Akwa Ibom State, Nigeria

Department of Banking, Finance and Insurance,
University of Uyo,
Akwa Ibom State, Nigeria

Sunday Sunday Akpan (Ph.D), University of Uyo, Akwa Ibom State, Nigeria

Department of Banking, Finance and Insurance,
University of Uyo,
Akwa Ibom State, Nigeria

Aye, Aye Khin (Ph.D), Universiti Tunku Abdul Rahman (UTAR)

Faculty of Accountancy and Management,
Universiti Tunku Abdul Rahman (UTAR)

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Published

2023-07-21

How to Cite

Mfon, N., Akpan, S. S., & Aye, A. K. (2023). Stock Assessment of Industrial Sector long-term Non-Financial Horizontal Mergers and Acquisitions in Nigeria. FUW-International Journal of Management and Social Sciences, 8(2), 126–142. Retrieved from https://fuw-ijmss.com.ng/index.php/fijmss/article/view/52