Financial Risk in Cross-Border Mergers and Acquisitions for Southern African Development Community Banks

dc.contributor.authorMakhura, Sedise
dc.contributor.supervisorTotowa, Jacques
dc.date.accessioned2025-03-12T12:54:32Z
dc.date.issued2024
dc.descriptionA research report submitted in partial fulfillment of the requirements for the degree of Master of Management in Finance and Investments to the Faculty of Commerce, Law, and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2024
dc.description.abstractThis study investigates the effect of cross-border mergers and acquisitions on financial risk and bank performance in the Southern African Development (SADC) region, where economic uncertainties are prevalent. Focusing on credit, market, and liquidity risks, the analysis draws on data across 14 bank cross-border mergers and acquisitions between 2002 and 2018. The fixed effects model used in this study revealed statistically significant relationships between performance, measured as the principal component variable of return on equity (ROE) and return on earning assets (ROEA); and specific financial risk factors, particularly non- performing loans to total loans as the credit risk proxy and net loans to total assets as the liquidity risk proxy. Firm size also demonstrated a significant relationship to performance. Although the aggregate financial risk variable did not present any statistically significant impact on performance, liquidity risk emerged as the decisive factor in determining bank performance. An increased loan-to-asset ratio was associated with deteriorated bank performance, highlighting the importance of managing liquidity risk effectively. These findings suggest that banks in the SADC region involved in cross-border mergers should reassess their risk management strategies and prioritise liquidity and credit risk management to improve performance and ensure operational sustainability in the SADC region.
dc.description.submitterMM2025
dc.facultyFaculty of Commerce, Law and Management
dc.identifier.citationMakhura, Sedise. (2024). Financial Risk in Cross-Border Mergers and Acquisitions for Southern African Development Community Banks [Master’s dissertation, University of the Witwatersrand, Johannesburg].WireDSpace.https://hdl.handle.net/10539/44254
dc.identifier.urihttps://hdl.handle.net/10539/44254
dc.language.isoen
dc.publisherUniversity of the Witwatersrand, Johannesburg
dc.rights© 2025 University of the Witwatersrand, Johannesburg. All rights reserved. The copyright in this work vests in the University of the Witwatersrand, Johannesburg. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of University of the Witwatersrand, Johannesburg.
dc.rights.holderUniversity of the Witwatersrand, Johannesburg
dc.schoolWITS Business School
dc.subjectCredit risk
dc.subjectFinancial risk
dc.subjectLiquidity risk
dc.subjectPerformance
dc.subjectBanks
dc.subjectCross-border
dc.subjectMergers and acquisitions
dc.subjectUCTD
dc.subject.otherSDG-8: Decent work and economic growth
dc.titleFinancial Risk in Cross-Border Mergers and Acquisitions for Southern African Development Community Banks
dc.typeDissertation

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