The Effect of Merger on Performance: Evidence from the UAE

Abstract

This study analyses the largest banking merger in the Middle East: Emirates Bank International merged with National Bank of Dubai to form the Emirates NBD. The study examines the effect of the merger on the wealth of shareholders and on the operating performance of Emirates NBD. The result shows that during the year surrounding the post-merger period, stock prices increased thereby enhancing the shareholders wealth and the operating performances also improved after the merger.

Keywords: merger, stock price, operating profit.