EFFECT OF MERGERS AND ACQUISITIONS ON SHAREHOLDERS WEALTH OF COMMERCIAL BANKS IN KENYA (original) (raw)

This study investigates the impact of mergers and acquisitions (M&A) on shareholders' wealth in commercial banks in Kenya. It analyzes the short-term returns experienced by shareholders of both acquiring and target banks, revealing that while target-firm shareholders tend to experience positive returns, acquiring firm shareholders often face underperformance following merger announcements. The findings contribute to ongoing debates about the effectiveness of M&A as a strategy for financial improvement, providing insights specific to the Kenyan banking context.