Full Length Research Paper

Effects of Mergers and Acquisitions on Employees Morale in the Nigerian Banking Industry: A Study on Access and Diamond Bank Plc

Onyeaghala Obioma Hyginus*, Unung Philip Undie and Iorngee Hyacinth Mngutswen

Article Number - 602A946A18CE9  | Vol. 2(1), pp. 1-10., January 2021  | 
 Received: 17 October 2020 |  Accepted: 18 January 2021  |   Published: 31 January 2021

Copyright © 2024 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0.


The study aimed to determine the effects of mergers and acquisitions on employee morale in the Nigerian Banking Industry with reference to Access-Diamond Plc. The major element in the failure or success of a merged/acquired firm is morale. It shows the attitudes of employees towards the firm’s objectives. Mergers/Acquisition was measured in terms of; work environment, organizational culture and leadership. Morale was measured in terms of; personal satisfaction, appreciation and social status. The study adopted a descriptive design which led to drafting and administration of a validated and reliably tested questionnaire. The sample size of 51 was arrived at from a population of 58 Access Bank staff in Gboko using Taro Yamane formula. A laudable number of 48 copies of administered questionnaire out of 51 were retrieved from respondents. The data collected was subjected to Linear Regression Analysis aided by Statistical Package for Social Sciences (SPSS v. 23.0). The study found that, two dimensions of mergers and acquisition; work environment and organizational culture had great effect on personal satisfaction and employee appreciation respectively. The other dimension; leadership, had no relationship with employee morale viz social status of the employee. The study recommended that; conducive work environment should be provided for employees, and managers should positively reinforce their employees by appreciating them as it boosts their morale while management should take cognizance of the employee’s morale when embarking on a merger/acquisition.


Keywords: Mergers, Acquisition, Employee morale, Work environment, Organizational culture, Leadership.


Adhikari, S. (2014). Merger and Acquisition as an Indispensable Tool for Strengthening Nepalese Banking and Financial Institutions (Ph.D. Thesis). Lapland University of Applied Sciences School of Business and Administration, Nepal.

Alao, R. O. (2010). Mergers and acquisitions (M&As) in the Nigerian banking industry: An advocate of three megabanks. European Journal of Social Sciences, 15(4): 554-563.

Anderibom, A. S., & Obute, C. O. (2015). The Effects of Mergers and Acquisitions on the Performance of Commercial Banks in Nigeria: Evidenced from United Bank for Africa (UBA) Plc. International Journal of Education and Research, 3(4): 93- 112.

Anyanwu, S. A. C., & Agwor, T. C. (2015). Impact of Mergers and Acquisitions on the Performance of Manufacturing Firms in Nigeria. An International Multidisciplinary Journal Ethiopia, 9(2):156-165. DOI:

Atul, B. & Maryam, A. I. A. (2020). The Perception of the Impacts of Mergers and Acquisitions on Shareholders’ Value in the Banking Sector. International Journal of Scientific & Technology Research, 9(4): 2829-2839.

Bakari, A. S. (2011). The trend and growth implications of bank recapitalization in Nigeria. African Journal of Business Management, 5(14): 5938-5945.

Biørn, E. (2017). Taxation, technology, and the user cost of capital (Vol. 182). Elsevier.

Edi, E. & Leony, I. (2019). How Merger and Acquisition Affect Firm Performance and Its Quality. Journal of Accounting Finance and Auditing Studies, 5(3): 42-53.

Gaughan, P. A. (2005). Mergers: What can go wrong and how to prevent it. Wiley Finance Editions, ISBN: 978-0-471-41900-6, 356p.

Hussain, S., Khoso, I. D., & Qureshi, F. (2020). Impact of mergers and acquisitions on shareholders' wealth: A Study of Telecom sector of Pakistan. Indian Journal of Science and Technology 13(21): 2104-2110. DOI:

Imala, O. I. (2005). Challenges of banking sector reforms and bank consolidation in Nigeria. CBN Bullion, 29(2): 26-37.

Kangetta, C. & Kirai, M. (2017). Effects of Mergers and Acquisitions on Employee Moralein the Kenyan Insurance Sector. The Strategic Journal of Business & Change Management, 4(1): 101-114.

Kumar, A. M. (2019). Impacts of Mergers & Acquisitions on Performance of Banking in Hong Kong. (Masters Dissertation) Dublin Business School.

Mardianto, M., Christian, N., & Edi, E. (2018). The impact of mergers and acquisitions on the company's financial performance. Benefita Journal, 3(1): 44-52. DOI:

Marr, B. (2004). The Effect of Mergers and Acquisitions on Employee Morale: Implications for Human Resource Development. (Master’s Thesis). St. John Fisher College.

Momodou, S. J., Massirah, M. & Abdul, B. (2017). The Effects Of Mergers & Acquisitions On Financial Performance: Case Study Of UK Companies. International Journal of Accounting & Business Management. 5(1): 74-92, DOI:24924/ijabm/2017.04/v5.iss1/74.92.

Obideyi, G. G. (2006). The Nigerian post-consolidation banks and competitive prospects in the global financial market. Oceanic Bank Economic and Financial Journal, Vol. 1, Issue 1, October-December, 2006.

Oirere, D. A. (2020). Effect of Mergers and Acquisition on Shareholders Wealth of Listed Firms at Nairobi Securities Exchange, Kenya. Journal of Economics and Finance, 11(1 Ser. II): 24-32.

Okpanachi, J. (2011). Comparative analysis of the impact of mergers and acquisitions on the financial efficiency of banks in Nigeria. Journal of Accounting and Taxation, 3(1): 1-7.

Ross, A. S., Westerfield, W. R. & Jordan, D. B. (2003). Fundamentals of Corporate Finance. 6th Edition. New York: McGraw-Hill Companies, Inc.

Saxena, S., Lourdunathan, F., Stalin, G. A., & Rajakamal, C. (2020). An Empirical Study: The Impact of Coronavirus Outbreak on Mergers and Acquisition on Financial Performance: A Special Reference to Tata Steel and Corus. Palarch’s Journal of Archaeology of Egypt/Egyptology 17(7): 7476-7485.

SEC (2005). Security and Exchange Commission Quarterly Vol. 1, January – March 2005.

Sharma, V. (2010). Do Bank Mergers Create Shareholder Value? An Event Study Analysis. Award Winning Economics Papers. Paper 10.

Soludo, C. (2004). Economic Intelligence. Financial Times , July 20, 2004, p. 24.


Onyeaghala Obioma Hyginus1*, Unung Philip Undie1 and Iorngee Hyacinth Mngutswen1

1Department of Business Administration, Federal University Wukari, Nigeria.

*Corresponding author Email: [email protected]

How to Cite this Article

Onyeaghala, O. H., Unung, P. U. & Iorngee, H. M. (2021). Effects of Mergers and Acquisitions on Employees Morale in the Nigerian Banking Industry: A Study on Access and Diamond Bank Plc. Journal of Research in Science and Technology, 2(1): 1-10.

Full-Text (PDF)

View / Download

 Back to Articles
 Back to Journals

Abbreviation: J. Res. Sci. Technol.
ISSN: 2971-7728 (Online)
Start Year: 2020
Published Articles: