Post-Merger Integration Capability and Shareholder Value Added.

BANK mergers; STOCKHOLDER wealth; VALUE added (Marketing); INFORMATION technology; INTELLECTUAL capital; VALUE (Economics)

The study investigates the impact of a post-merger integration capability (hereinafter PMIC) on shareholder value added (hereinafter SVA) of acquirer banks listed on the Ghana Stock Exchange (hereinafter GSE). The study used panel data techniques of random effects, fixed effects estimation and generalised method of moments (GMM) to purge time-invariant unobserved firm specific effects and to mitigate potential endogeneity problems. The study indicated that PMIC (proxied by strategic, communication, coordination and network, marketing, technology, knowledge management, human capital, intellectual capital, managerial and information technology capabilities) have positive and significant influence on SVA (proxied by Economic Value Added, Market Value Added and Cash Value Added). The results further show that bank size, bank age, bank growth and leverage moderate the relationship between PMIC and SVA. The study recommends that banks analyse their organisational capabilities and firm size prior to any business expansion decision (organic or inorganic). [ABSTRACT FROM AUTHOR]

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