Business Combination and Corporate Performance: A Balanced Score Card Approach

Abstract

Abstract

This paper examines business combination and corporate performance by using a balanced score card approach. To form the mergers and acquisition sample, we selected the existing banks with cases of mergers and acquisition with post 25 billion recapitalisation identity. Fifty customers and fifty employees were selected from the two sample banks. Questionnaires with Likert-style scale were administered to both the customers and employees. In addition, we carried out a content analysis of the financial statements of the selected banks for 8 years pre and 8 years post combination. The estimation technique for the data is the Wilcoxon sign rank test since the issue under investigation is a pre and post effect. The study finds a significant impact of business combination on customer satisfaction, learning and innovation and operational efficiency. It was discovered that there is poor consultation with the employee on issues of mergers and acquisition, high level of employee turnover in the post-merger period and general job dissatisfaction among employees. The study recommends talent audit, consultation with the employee and continuous post-merger evaluation of the business.