Abstract:
This research has been undertaken to evaluate the performance
outcomes of mergers and acquisition a study of Pre and Post
mergers and acquisition. The primary objective of this research
is to study the significant developments in the financial
stability of the banking sector of Pakistan. The secondary
purpose of this research is to provide detailed information for
analysis to the future scholars, stakeholder, bankers, and
government authorities. The consolidated review of the financial
ratios will help the future researchers to evaluate the longer
run changes and developments in the banking sector that resulted
as outcome of mergers and acquisition. To examine the influence
of M&A deals in Pakistan we have used financial ratios which
include investment ratio (EPS and ROI), liquidity ratio (ATD, CTA
DTA), profitability ratios (ROA and ROE) and solvency ratio (DR
and D/E). After thorough analysis of the research papers
published on acquisition and mergers and the above mentioned
financial ratios, the researcher concluded that not all the banks
have shown positive performance and outcome after the M&A deal
the reason for that was the banking organization in Pakistan had
failed in analyzing and constructing a feasible financial plan.
The present research relies on the data that is available to
public through competition commission of Pakistan, Karachi stock
exchange and the annual reports shown by the sample we have
selected. This research is based on accounting ratios that will
give the insight to the performance. The results of this study
may be applied in Pakistan financial sector or in underdeveloped
or developing countries. It’s useful for banks, investors,
stakeholders, bank employees and even for other authorities like
Government and big organizations. The mentioned organization
above can develop and improve the capabilities they have to
effectively solve professional problems they will face. This
paper value can be identified easily because of the topic; hence
it improves the knowledge about banking sector, M&A impact and
4
the variance in the performance. It provides the information that
every decision maker like management, businessman and
stakeholders will need to get things done value ably.
Key words: Mergers, Acquisition, Banking Sector Per
