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ABSTRACT This paper contributes to a small but burgeoning literature on business combination and corporate performance by using a balanced score card approach. To form the mergers and acquisition sample, we selected the existing banks with cases of
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  BUSINESS COMBINATION AND CORPORATE PERFORMANCE: ABALANCED SCORE CARD APPROACH  O. J. ILABOYA (Ph.D, FCA, FCTI)(Associate Professor of Accounting)+!"#$!!""%"$&, +!"#'#%&!'!ofuanh*tegai-.co, oh*te*ahoo.co,  / 0enr* 1O2Y3431I2A (1.5c)De6artent of Accounting,Facu-t* of 1anageent 5ciences,7ni8ersit* of Benin, Benin Cit*, 39o 5tate, 2igeria 1  ABSTRACT  This paper contributes to a small but burgeoning literature on businesscombination and corporate performance by using a balanced score cardapproach.  To form the mergers and acquisition sample, we selected the existing bankswith cases of mergers and acquisition with post 25 billion recapitalisationidentity. Fifty customers and fty employees were selected from the twosample banks. uestionnaires with !ikert"style scale were administered toboth the customers and employees. #n addition, we carried out a contentanalysis of the nancial statements of the selected banks for $ years pre and$ years post combination. The estimation technique for the data is the%ilcoxon sign rank test since the issue under in&estigation is a pre and poste'ect.  The study nds a signicant impact of business combination on customersatisfaction, learning and inno&ation and operational e(ciency. #t wasdisco&ered that there is poor consultation with the employee on issues of mergers and acquisition, high le&el of employee turno&er in the post"mergerperiod and general )ob dissatisfaction among employees. The studyrecommends talent audit, consultation with the employee and continuouspost"merger e&aluation of the business. Keywords: Mergers, customer satisfaction, nancial performance,Wilcoxon sign rank 2  INTRODUCTION *usiness combination has been described as a &ague or nebulous conceptthat describes the accounting terminology of mergers, acquisition,absorption, amalgamation, and holding company arrangement. #n the settingwith +igeria as a reference point, business combination is moti&ated bysur&i&al strategy -kamwkor, /$/0 #laboya, 2115. 3u(ce to mentionhowe&er that business combination may be dri&en by other forces such assynergy and economies of scale *raddley, 4esai  6im, /$$0 7ubbard 8alia, //10 3eth, //10 and 9aguiera, 9egginson and +ait, /$$0 empirebuilding *auma, /:; and 9ueller, /:/0 management self"interest*erko&itch and +arayanan, //<0 9itchell  !ehn, //1 and reduction incorporate competition +wankwo, //20 elimination of inept management!ewis  8endril. *usiness combination is a complex and multidisciplinary phenomenon,drawing su(ciently from the eld of nance, management strategy,psychology, beha&ioural sciences and operations research. #rrespecti&e of this di&erse nature, research emphasis has been on the impact of businesscombination on corporate performance =hosh, 2110 7ealy, 8alepu >uback, //20 #laboya  ?wubamwen, 211< and 8aulter, 211<. %hilerelegating the other aspects or dimensions of business combination. -gainst the abo&e backdrop, the broad ob)ecti&e of the study is toexamine the impact of business combination on corporate performance from 3  a wider perspecti&e of the balanced scorecard, which integrates nancialperformance with other qualitati&e measures of organisational performancesuch as internal business process, customer satisfaction and learning andinno&ation. This approach is considered more robust since it is an e'ecti&ecombination of primary data through the instrumentality of questionnaireand secondary data using the content analysis of the annual nancial reportsof the sample studied.  To pre&iew the result of the study, we nd that business combinationpresents a mixed impact on the nancial performance of our sample while ithad a positi&e impact on the performance of First *ank +igeria 8lc, there&erse is the case for ?nited *ank of -frica 8lc. #n the same &ein, the studyreports mixed reaction on the impact of business combination on thedimensions of internal business process. 3tudy nds a signicant positi&eimpact of business combination on customer satisfaction and learning andinno&ation. @ur paper di'ers substantially from prior studies and thus contributes to thesmall but burgeoning literature on the impact of business combination oncorporate performance from the broad perspecti&e of balanced score card. #naddition to ad&ancing a qualitati&e dimension to the study of corporateperformance, our estimation technique using the %ilcoxin test on a 4  combination of both qualitati&e and quantitati&e measures of performancemay be considered no&el. Following the introductory section, the rest of the paper is organised asfollowsA 3ection two presents a critical re&iew of extant literature, sectionthree focuses on the methods, section four presents the estimation resultand discussion. The conclusion and policy implications of the ndings are thefocus of section &e. 5
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