Healthcare, Service, Oil and Gas and long-term Intervals and Industries Technical Efficiency of Non-Financial Mergers and Acquisitions in Nigeria

Authors

  • Akpan. Mfon, N.U. (PhD) University of Uyo, Akwa Ibom State, Nigeria
  • Sunday Sunday Akpan (PHD) University of Uyo, Akwa Ibom State, Nigeria
  • Frank, Bassey Ime University of Uyo, Akwa Ibom State, Nigeria

Keywords:

Oil and gas, healthcare, Service, M&A, Technical efficiency, Nigeria

Abstract

Oil and gas, healthcare, and Service long-term intervals and industry technical efficiency (TE) of non-financial mergers and acquisitions (M&As) in Nigeria were examined. Data Envelopment Analysis (DEA) and stochastic Frontier Analysis (SFA) with Mann Whitney U[1]test model in testing the results for significance. Interval DEA TE results showed bidder significant decline, one, and three years after M&A with two-year non-significant improvement, similar results for the target firms’ interval. Non-merging firms’ interval TE significantly improved, two and three years but one year non-significant after M&A. Industry results showed bidder firms decline significantly in both DEA and SFA models in healthcare, but non-merging indicated non-significant decline both in DEA and SFA models. The implication of this result is that selected bidder companies stimulated the non-merging companies' TE improvement within the intervals. The findings of a non-significant TE among the selected bidder and target companies during the M&A period (three years after M&As) suggest that M&A activities did not lead to an improvement in the TE of the companies. The policy implication of TE is two-fold. First, M&A investors must adequately provide funds that talented management will utilize for current equipment, innovation, or modern technology to work with. The government will need to provide a good educational system and good training in the country to develop skillful employees needed by M&As and others. An additional implication is that TE in merging companies in Nigeria calls for serious scrutiny of M&A activities, mediated by the FCCPC.

Author Biographies

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

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

Sunday Sunday Akpan (PHD), University of Uyo, Akwa Ibom State, Nigeria

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

Frank, Bassey Ime, University of Uyo, Akwa Ibom State, Nigeria

Department of Insurance,
University of Uyo, Akwa Ibom State, Nigeria

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Published

2024-01-29

How to Cite

Akpan, M. N., Akpan, S. S., & Frank, B. I. (2024). Healthcare, Service, Oil and Gas and long-term Intervals and Industries Technical Efficiency of Non-Financial Mergers and Acquisitions in Nigeria. FUW-International Journal of Management and Social Sciences, 9(1), 66–81. Retrieved from https://fuw-ijmss.com.ng/index.php/fijmss/article/view/64