Key Features:

Chapters: 5
No of Pages: Pages
Methodology: Ordinary Least Square

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Introduction:

Mergers and other firms of corporate central have emerged as a major forces in the modern financial and economic environment. The general set of explanation or instructions of corporate synergy signifies that the value of firms may result in more efficient and effective management, exploitation of market power, improved production techniques and overall corporate performance. (G. Inthumati, 2011).

Mergers is statutorily defined as any amalgamation of undertakings of two or more companies or corporate bodies (section 509 of CAMA 1990). The financial reporting standard (FRS) defines mergers as a business combination that results in the creation of a new reporting entity formed by the combining parties in which the shareholders of the combined business come together in a partnership for mutual sharing of risk and benefits of the combined entity and in which no party to the combination in substance obtains control over any other is seen to be dominant.

Merger is the combination of two or more companies, generally by offering the stockholders me company securities in the acquiring company for the surrender of their stock (Investopetia). Merger also the combination of two or more companies into one with only retaining it identity. Typically the larger of the two companies is the company whose identity is maintained. If often involves an exchange of stock, called pooling interest, which avoids taxes. The purchase (accounting) method where good will is recorded can also be used. (John w. Hansen 2007).

In Nigeria and other emerging economics, mergers has been embraced as a panacea to the seemingly mutiny global economic recession. According to Akamokhor (1989:2) gives the current economic crisis facing Algeria there is no doubt that the mergers will continue to be major avenue open to firms in the country trying to resolve the problem of youth and insolvency. To this end there is a need for corporate management to be concern about the subject matter (mergers) either as a possible target for acquisition or seeking to require another firm.

One of the significant objectives of any economy is achieving high rate of economic growth. In achieving this, corporate entities keep on improving its policies and explore various available options both at micro and macro levels, and business combination is an external approach to this objective.