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Research Paper | Management | Rwanda | Volume 6 Issue 10, October 2017 | Popularity: 7.1 / 10

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Effect of Merger and Acquisition Strategy on Financial Performance of Financial Institutions in Rwanda Access Bank, I & M Bank and Ecobank

Gakwandi Jean Marc, Dr. Kule Julius Warren

Abstract: The main purpose of this research project was to analyze the effect of mergers and acquisition strategy on financial performance of banking institutions in Rwanda. The researcher achieved this study by use of three (3) specific objectives namely, To examine the effect of capital accumulation on performance of the selected Commercial banks, To analyze the effect of Man power Potential & size on performance of the selected Commercial banks in Rwanda and to analyze the effect of Combine technology on performance of the selected Commercial banks in Rwanda. The study will be significant to the researcher, commercial banks in Rwanda, Jomo Kenyata University of Agriculture and Technology and other scholars who have interest in the same area. The researcher used descriptive design based on qualitative and quantitative approach in order to get better analysis of the study. The population of the study was 143 and samples of 59. Both primary and secondary source of data was consulted by use relevant tools like questionnaire and documentary analysis in order to come up with required data. Data was processed by use of SPSS and analyzed by use of percentages/frequency, mean and standard deviation. In the finding it was established that mergers and acquisition strategies like Man power Potential & size, Capital accumulation and Combine Technology contributes positively to profitability of the bank, return on investment, organization Asset and return on equity. The relationship between mergers and acquisition strategies and Financial Performance of the bank the results indicate that independent variable has Positive high correlation to dependent variable equal to.888** and the p-value is.000 which is less than 0.01. When p-value is less than significant level, therefore researchers conclude that variables are correlated. This means that there is a significant relationship between mergers and acquisition strategies and Financial Performance of the bank by 88.8 %. The banks proprietors should increase more capital in order for the bank to operate effectively and efficiently especially in financing development capital investment.

Keywords: Acquisition, Financial Capital Accumulation, Financial performance, Intellectual, Capital Acquisition, Merger, Technological Innovations

Edition: Volume 6 Issue 10, October 2017

Pages: 1444 - 1451

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