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Martinsadefisayo@gmail Com1438799348
Martinsadefisayo@gmail Com1438799348
A PH.D PROPOSAL
SUBMITTED BY
HYPOTHESIS 3
Ho: Mergers and acquisitions do not affect the market share prices of
emerged companies.
HI: Mergers and acquisitions affect the market share prices of emerged
companies.
HYPOTHESIS 4
Ho: Differences in organizational cultures do not affect success of mergers and
acquisitions in Nigerian companies.
HI: Differences in organizational cultures affect the success of mergers and
acquisitions in Nigerian companies.
HYPOTHESIS 5
Ho: Nigerian businessmen do not have positive attitude towards mergers and
acquisitions.
HI: Nigerian businessmen have positive attitude toward mergers and
acquisitions.
HYPOTHESIS 6
Ho: Mergers and acquisitions are not effective strategies in improving
corporate performances.
HI: Mergers and acquisitions are effective strategies in improving corporate
performances.
Horizontal Mergers :- involve firms that directly compete for sales of similar
products or services.
Vertical Mergers:- Occur when firms that had been operating at different stages
in the production and distribution of a product combine to form a single firm. A
vertical merger occurs if a firm acquires a seller of its output. This is then
otherwise known as down stream integration. While an upstream integration
occurs when a firm of a supplier of resources or components needed for a
product is acquired by a firm which is making such product.
Some other varieties of mergers have also been identified. These include
market – extension merger and product - extension merger
(www.investopedia.com/university/mergers). In a market – extension merger,
two companies that sell the same product in different markets are brought
together as one. In a product – extension merger, two companies selling different
but related products in the same market are brought together as one.
Mergers and acquisitions could take any form, the most important thing to
note is that it must promote the achievement of the organizational objectives and
be strategically justified.
It has been observed that the writers’ views on the reasons for mergers and
acquisitions are similar. Therefore, these factors would be explained together as
follows:- Diversification is one of the reasons for mergers and acquisition. Clark
(1999:111) defines diversification as the extension of the range of goods or
services offered into new areas, either material or geographical. Diversification
can, therefore be achieved through mergers and acquisitions.
Increase in market share is also one of the reasons for mergers and
acquisitions. This increase in share of market is that of an existing market. In
other words, the emerging (new) company would want to remain a market leader
and also increase its market share.
Moreover, Okwor (2005:8) asserts that the bigger a company is, the more
funds it will have. Such a company would be able to use the funds for investment
opportunities. Such big size can be achieved through merger or acquisition.
It has been asserted that mergers and acquisitions have some benefits.
Mergers and acquisitions often result in a number of social benefits
(www.answers.com/merger). Despite the existence of these benefits, a merger
or acquisition may be a failure. Writing on consolidation in the Nigerian Banking
Industry, Nwokoma (2005) asserts that not all mergers and acquisitions succeed
in leading to the emergence of a more viable enterprise.
Furthermore, not all applications made for merger to the Securities and
Exchange Commission usually succeed. 22 applications, for instance were
received by the Securities and Exchange Commission (SEC) between 1982 and
1992, 19 of them were successfully merged (Yomere 1995).
BIBLIOGRAPHY
BOOKS
Aborode, Remi (2005), Strategic /Financial Management, Lagos
Masterstroke Consulting
Gbede, G. Omotayo (2005), Strategic Mergers & Acquisitions, 3rd Edition, Lagos,
Westbourne Business School.
Khan, M.Y. & P.K. Jain (1999), Financial Management – Text & Problems.
3rd Edition. New Delhi, India; Tata
McGraw Hill Publishing Company Ltd.
Oghojafor, B.A, (2006), Essentials of Business Policy, Lagos; Ababa Press Ltd.
Okwor, Eugene (2005) Merger & Acquisitions: The Environment & Practical
Considerations, In Ezekiel O. Chiejina
(ed) Issues In Mergers & Acquisitions for the Insurance
Insurance Industry, PP6 - 8
Lagos; Nigeria Insurers Association.
OTHER PUBLICATIONS
Akele, Sylvester (2004) “Mergers & Acquisitions In Nigeria; the Regulatory
Imperatives”
INTERNET SOURCES
www.answers. Com/merger
www.investopedia.com/university/mergers