Abstract:

Corporate restructuring, in its simplest form, can be described as the process of changing the structure (managerial, financial, etc.) of a business organization to enhance its performance. The bank capital reform of 2005 which raised minimum equity capital from #2 billion to #25 billion drastically restructured banking business in Nigeria through mergers and acquisitions which produced 25 out of 89 banks that existed prior to the reform. Based on historical data on bank performance, this study was designed to determine if the reform significantly impacted the post-implementation performance of banks. Panel data from a sample of 5 banks for the period 1996-2016 was analyzed using the random effects model. The ordinary least squares method was used to ascertain if bank performance (represented as return on assets and return on equity) differed significantly between pre- and post-implementation periods. The result showed no significant difference in return on assets between pre- and post-merger and acquisition periods. However, with regard to return on equity, there was strong evidence that profit performance of banks differed between the periods.