Post-merger Effect on Operating Performance of Financial Institutions: Evidence from Nepal

  • Hari Prasad Pathak
Keywords: Merger, Operating Performance, Profitability, Accounting Ratios

Abstract

This article studies post-merger operating performance of financial institutions using the data set published in their annual reports. Based on 22 merger deals made during 2004-20013 by financial institutions listed in the Nepal Stock Exchange, this paper analyzes their financial statements for four years (two year before the merger and two year after the merger) by using six key accounting ratios. In spite of certain limitations, accounting ratios are still considered as a convenient and reliable analytical tool. The article concludes that merger deals fail to significantly improve the post-merger operating performance of financial institutions.

Repositioning Vol.1(1) 2016: 11-22

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Author Biography

Hari Prasad Pathak

Hari Prasad Pathak is an Associate Professor in Finance at Prithvi Narayan Campus, Pokhara. He has more than 21 years of experience in teaching and research and published more than a dozen research papers in various journals. He was awarded a M.Phil. degree in 2014. He is also a Ph.D. scholar of Tribhuvan University, Nepal. His area of interests includes VAT, credit management, and mergers and acquisitions.

Published
2016-11-20
How to Cite
Pathak, H. (2016). Post-merger Effect on Operating Performance of Financial Institutions: Evidence from Nepal. REPOSITIONING The Journal of Business and Hospitality, 1, 11-22. https://doi.org/10.3126/repos.v1i0.16039
Section
Research