Volume 29 Number 1, 2024

Post-Merger Integration Capability and Shareholder Value Added

Paul Kwasi Apreku-Djan ^a, Charles Ricky-Okine ^b, Francis Kwaku Kuma ^c, Isaac Kofi Oppong Apreku ^d, Emmanuel Gyamera ^{e
a, c} Department of Accountancy, Koforidua Technical University
^a apreku-djan.kwasi@ktu.edu.gh 
^c Kwakuhull@gmail.com   
^b Department of Purchasing & Supply Systems, Koforidua Technical University 
charles.ricky@ktu.edu.gh
^d Anvil Consult, Ghana
fiifiapreku@gmail.com 
^e Department of Accounting, University of Professional Studies, Accra
emmanuel.gyamera@upsamail.edu.gh

ABSTRACT

The study investigates the impact of a post-merger integration capability (hereinafter PMIC) on shareholder value added (hereinafter SVA) of acquirer banks listed on the Ghana Stock Exchange (hereinafter GSE). The study used panel data techniques of random effects, fixed effects estimation and generalised method of moments (GMM) to purge time–invariant unobserved firm specific effects and to mitigate potential endogeneity problems. The study indicated that PMIC (proxied by strategic, communication, coordination and network, marketing, technology, knowledge management, human capital, intellectual capital, managerial and information technology capabilities) have positive and significant influence on SVA (proxied by Economic Value Added, Market Value Added and Cash Value Added). The results further show that bank size, bank age, bank growth and leverage moderate the relationship between PMIC and SVA. The study recommends that banks analyse their organisational capabilities and firm size prior to any business expansion decision (organic or inorganic). 

JEL Classification: G3, G210

Keywords: post-merger integration capability, shareholder value added, economic value added, market value added, cash value added

Cite this article: 

Apreku-Djan, P.K., Ricky-Okine, C., Kuma, F.K., Apreku, I.K.O., Gyamera, E., 2024, Post-Merger Integration Capability and Shareholder Value Added, International Journal of Business, 29(1), 003. https://doi.org/10.55802/IJB.029(1).003