The impact of merger and acquisition on return on equity, earnings per share, and dividend per share of selected commercial banks' in Malaysia / Athirah Rahmidi

As organizations seek to grow into new markets and obtain a competitive advantage, mergers and acquisitions are becoming more common in the professional services industry. A merger occurs when two companies agree to integrate their existing operations into a single new entity. Companies do this for a variety of reasons. One of these goals is to broaden their reach and increase market share. The purpose of this research are aims to explore whether there is a significant or insignificant impact on the performance of banks in term of Return on Equity, Earnings per Share, and Dividend per Share of selected commercial banks after the M&A which are the common matrix been used by investor in determining the investment decision. Samples taken from five selected commercial bank that involves in merger and acquisition process for a duration of 10 years which collected from 5 years before and after the merger and acquisition process has occurred. The data in this research was analysed using panel data. Financial ratio analysis comparison and regression analysis are used by researcher as research methodology. The findings of this study reveals that, the merger and acquisition have a positive and significant impact towards earnings per share and dividend per share. This findings will enables the organizations to build a better competitive position within the industry and provide an investor an overview of the performance for better decision making in the future.