Increasing Trend of Mergers and its Impact on the Bottom Line

Evidence from Pakistan’s Banking Sector

  • Muzzamil Hussain
      University of Gujrat
    • Muhammad Mubeen
        University of Gujrat
      Keywords: Merger, Financial institutions performance, Financial ratios

      Abstract

      Aim of this study is to provide the information to the bankers, government authorities, employees and the investor of the financial institutions about the impact of the merger on the performance of the banks. For this purpose, financial ratios such as the liquidity ratio, loan to deposit ratios are measured to see the short term paying capacity of the banks. Investment ratio such as earning asset to total asset ratio; solvency ratio such as “deposit time capital”; equity capital to total asset, profitability ratios include the interest margin to earning asset are used to analyze the impact of merger and on bank performance. By using ratio analysis, the study concludes if the merger and have a positive relationship with merger.

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      Article History
      Received: 2018-04-17
      Published: 2018-07-03
      Dimensions
      How to Cite
      Hussain, M., & Mubeen, M. (2018). Increasing Trend of Mergers and its Impact on the Bottom Line. SEISENSE Journal of Management, 1(3), 48-58. https://doi.org/10.5281/zenodo.1286691
      Copyright & License

      Copyright (c) 2018 Muzzamil Hussain, Muhammad Mubeen

      Creative Commons License

      This work is licensed under a Creative Commons Attribution 4.0 International License.