Browsing by Author "Ayagre, P."
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Item Bank mergers and acquisitions and the post-merger and acquisition performance of combined banks: evidence from Sub-Saharan Africa(Cogent Economics & Finance, 2024) Ayagre, P.; Aboagye, A.Q.Q.; Sarpong-Kumankoma, E.; Asuming, P.O.This study sought to ascertain the effects of bank mergers and acquisitions on the performance of merged banks in Sub-Saharan African (SSA) countries between 2003 and 2019. Specifically, the study aimed to investigate the impact of regulation-induced bank mergers and acquisitions (M&A’s) on the post-merger profitability of merged banks in SSA. The motivation for the study is to provide evidence for or against the regulator’s claims that regulation-induced bank M&As will improve the performance of merged banks in SSA. The article presents the results of the total sample of all mergers and acquisitions examined in the study and two sub-samples: the regulation-induced M&A sub-sample and the voluntary M&A sub-sample. We measure profitability by return on assets, return on equity, and net interest margin. The paper employed a dynamic panel Generalized Methods of Moments approach to analyse the relationship between bank M&As and profitability. The study found no profitability improvement after M&A across all profitability measures for the total sample and the two sub-samples. Instead, the empirical results reveal that bank profitability suffers after mergers and acquisitions across all profitability measures. The results show that, for regulation-induced mergers and acquisitions, a merged bank’s profitability is adversely affected from the beginning of the merger or acquisition to the sixth year of mergers and acquisitions. The findings also reveal that bank risk negatively affect profitability, while liquidity positively affect profitability, except returns on equity. Bank costs-to-income ratios as expected to show negative relationship with profitability. All macroeconomic variables show the expected relationship, positive for GDP growth and negative for inflationItem What drives bank lending? A closer look at bank lending types in Africa(African Journal of Economic and Management Studies, 2022) Ayagre, P.; Kusi, B.; Dzeha, G.; Kriese, M.Purpose: In this study, the authors present unique evidence on bank lending types by paying particular attention to the factors that drive the different types of bank lending in Africa using bank-level data. Design/methodology/approach – In presenting such evidence, the study employs a robust fixed effect panel data with year and technological controls comprising 57 banks from 29 African economies between 2006 and and 2015. Findings: The results show that different factors affect different bank lending types differently in Africa. Specifically, while the authors find that total or aggregate bank lending is positively driven by bank capitalization and spread but negatively driven by bank size, corporate and commercial bank lending is positively driven by bank size, spread, inflation, elections and extent of business disclosure but negatively driven by bank capitalization, loan loss reserves, operational costs, and gross domestic product per capita. Moreover, interbank lending is both negatively and positively driven by bank capitalization and size respectively, while other bank lending type are driven positively by financial crises but negatively by bank size, inflation and extent of business disclosure. Finally, retail and consumer lending are positively driven by bank capitalization, loan loss reserves, and spread. while negatively driven by bank size and inflation. Practical implications: These imply that bank managers, regulators, policymakers and researchers must begin to see each bank lending category separately and independently since varying factors influence the different categories of bank lending differently. Originality/value: The study presents new insights into how different factors determine different lending types in Africa for the first time, to the best of the authors’ knowledge.