The Effect of Merger on Performance: Evidence from the UAE

Authors

  • Manuel Fernandez Associate Professor, Skyline University College, P.O. Box 1797 University City of Sharjah, Sharjah, UAE
  • Rajesh Kumar Associate Professor, IMT-Dubai, PO Box 345006, Academic City Dubai, UAE

Keywords:

merger, stock price, operating profit.

Abstract

This study analyses the largest banking merger in the Middle East: Emirates
Bank International merged with National Bank of Dubai to form the Emirates
NBD. The study examines the effect of the merger on the wealth of
shareholders and on the operating performance of Emirates NBD. The result
shows that during the year surrounding the post-merger period, stock prices
increased thereby enhancing the shareholders wealth and the operating
performances also improved after the merger.

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Published

2023-01-16

Issue

Vol. 4 No. 1 (2014)

Section

Articles