JOURNAL OF SOCIAL AND MANAGEMENT SCIENCES
Journal of the Faculty of Social Sciences, Delta State University, Abraka, Nigeria
ISSN: 1597-0396
DOI: 10.5987/UJ-JSMS
Email: jsms@universityjournals.org
TESTING FOR DIFFERENCE IN FIRM STOCK RETURNS IN NIGERIA: A PRE AND POST-MERGER AND ACQUISITION INVESTIGATION
DOI: 10.5987/UJ-JSMS.17.054.1 | Article Number: 2552DA801 | Vol.12 (1) - April 2017
Authors: SULAIMAN Abdulwahab Sulaiman and MIJINYAWA Umar Mohammad
Keywords: Stock Returns, firm market performance, Merger and Acquisition
Following the divergence views on the resultant outcome of merger and acquisition in Nigeria, this study tested for significant difference in firm market performance in Nigeria under Pre and Post-Merger and Acquisition. Data on stock returns and returns variations were collated from Machame RATIOS from 2006 to 2015 and the Wilcoxon signed test was used to test for difference in pre and post M&A stock market performance. The study formulated two research hypotheses. Following our hypotheses, the findings revealed that there is no significant difference in firm's abnormal stock returns before and after merger and acquisition. We also found out there is also no significant difference in firm stock returns variations (Risk) before and after mergers and acquisition. This study therefore recommended that investors and portfolio managers should not try to invest on the basis Merger and Acquisition as this does not translate into improvement of shareholders' returns.
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