Impact of mergers and acquisition on the financial performance of firms listed at the Nairobi Securities Exchange

Abstract

Mergers and acquisitions activities around the world have generally increased according to various surveys conducted, this has been due to high competition and the urge of generating cost efficiency through the implementation of economies of scale hence the need for alternative forms of company restructuring through mergers and acquisitions with a major goal to improving the firm's financial performance. This study aimed to investigate the impacts of mergers and acquisitions on the financial performance of firms listed at the Nairobi Securities Exchange. A review of literature was conducted to identify what has been done and the knowledge gap. It was guided by specific objectives that sought to: To evaluate the effect of risk diversification on the financial performance of firms listed in Nairobi Securities Exchange, To determine the effect of synergy on the financial performance of firms listed in NSE and to establish the impact of market share on the financial performance of firms listed in the NSE. The study employed has a descriptive research design and the stratified random sampling technique to get the sample for the study.