Dose mergers and acquisitions significantly impact the performance of banks in long run? A pre and post CAMEL study of banking in Pakistan

Keywords: Acquisition, Banking, CAMEL Ratios, Long Run, Merger.


The competition among corporates to become market leader is not only with in economy but also it is global and it effects the organizations in a positive or in a negative way as well in such a challenging and rapid environment Merger & Acquisition (M&A) is one of the best ways to enhance the capital, customers, and profitability. This paper is based on the CAMEL (Capital Adequacy, Asset Quality, Management Soundness, Efficiency and Liquidity Ratios) framework. Overall, twenty-five ratios before and after merger included on nine year pre and nine-year post were collected/ calculated and analyzed with SPSS and E-Views. Paired Sample T test were calculated and analyzed with the use of SPSS and structural break down test with the use of E-Views. The research after testing and analysis with software conclude that banks in long run shows significant difference in Capital adequacy ratios and Asset Quality and shows better Capital Adequacy and Asset Quality Ratios after merger among the five ratios tested.


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Author Biographies

Muhammad Raghib Zafar, University of Sindh, Pakistan.

PhD. Scholar IBA, University of Sindh, Pakistan.

Abdul Sattar Shah, University of Sindh, Pakistan.

Professor (PhD Supervisor) Director IBA, University of Sindh, Pakistan.


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How to Cite
Zafar, M. R., & Shah, A. S. (2021). Dose mergers and acquisitions significantly impact the performance of banks in long run? A pre and post CAMEL study of banking in Pakistan. Amazonia Investiga, 10(40), 62-72.