Browsing by Author "AKIDIVA, HILDA MIDEVA"

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    MERGERS, ACQUISITIONS SYNERGETIC ADVANTAGES AND FINANCIAL SUSTAINABILITY OF LISTED FIRMS ON THE NAIROBI SECURITIES EXCHANGE
    (THE CATHOLIC UNIVERSITY OF EASTERN AFRICA, 2025-08) AKIDIVA, HILDA MIDEVA
    This study examined the effect of synergetic advantages derived from mergers and acquisitions on the financial sustainability of firms listed on the Nairobi Securities Exchange, with firm size as a moderating variable. The study was motivated by the observation that despite an increase in Mergers and acquisitions activities, many listed firms continued to face financial sustainability challenges, raising concerns about the effectiveness of these strategic consolidations. The main objective was to assess how operational, financial; market and managerial synergies influence the financial sustainability of listed firms and whether firm size moderates these relationships. The study targeted all listed companies that engaged in significant mergers and acquisitions activities between 2003 and 2023. Using purposive sampling, 11 firms that met the criteria and had consistent post-merger data were selected. Secondary data was obtained from audited financial statements, corporate disclosures and annual reports. A structured data entry sheet was developed to guide data collection, focusing on relevant financial indicators such as asset turnover ratio, debt-to-equity ratio, Tobin’s Q and leadership turnover rate. Data was processed and analyzed using EViews statistical software. Descriptive statistics were used to summarize key features of the data, while inferential analysis was conducted using panel data regression models. Two regression models were estimated: one testing the direct effect of synergies on financial sustainability and another testing the moderating role of firm size through interaction terms. Diagnostic tests were carried out to validate the assumptions of panel regression and robust estimators were applied where necessary. The findings revealed that operational, financial and managerial synergies had a statistically significant positive effect on financial sustainability, whereas market synergy had no significant impact. The moderating effect of firm size was significant for operational and financial synergies, indicating that larger firms were better positioned to leverage these advantages. However, firm size did not significantly moderate the effects of market or managerial synergies. The study concluded that internal integration factors such as operational efficiency, capital structure optimization and leadership alignment are critical to realizing sustainable post-merger performance. It was further concluded that firm size enhances synergy realization, particularly in resource-dependent processes. The study recommends that firms engaging in mergers and acquisitions should prioritize structured post-merger integration planning, including leadership alignment and operational audits and tailor strategies according to firm size. It also recommends that policymakers and regulators enhance post-merger disclosure requirements and support sector-specific merger guidelines. The study recommends future research to explore the mediating role of Fintech digital technologies. This study adds to the growing literature on the effectiveness of mergers and acquisitions in emerging markets and offers practical guidance for business leaders, Investors and policymakers seeking enhanced post-merger outcomes.