Mergers and Acquisitions in Banking A study on Financial Performance and Capital Structure Changes

Abstract

This research focuses on contrasting the financial performance of banks before and after engaging in mergers and acquisitions (M&A). It involves a comprehensive analysis of specific banks' annual reports for two years preceding and two years following M&A transactions, utilizing financial tools such as leverage and ratio analysis, as well as examining changes in their capital structure, including debt-to-equity ratios, the allocation of long-term and short-term debt, and overall financial leverage. The study aims to shed light on how these financial strategies impact a bank's stability and success. Understanding the influence of M&A transactions on capital structure can equip banks to make informed decisions and adapt their financial strategies to thrive in the competitive financial industry landscape.