Effects Of Corporate Acquisitions On Non-financial Performance Of Commercial Banks In Kenya: A Case Of The Acquisition Of Giro Bank Ltd By I & M Bank Ltd

With increasing competition and the economy heading towards globalization, the trend on acquisitions are expected to rise at a much larger scale with the aim of achieving a competitive edge in the financial industry in Kenya. The study aimed at investigating the implications of acquisitions on non-financial performance of the acquisition of Giro bank ltd by I&M Bank Ltd. The study was guided by specific objectives: to establish the influence of Synergy effects on non-financial performance of Giro bank ltd acquisition by I&M Bank Ltd, to establish the influence of capital base on non-financial performance of Giro bank ltd acquisition by I&M Bank Ltd and to determine the influence of brand effects on non-financial performance of Giro bank ltd acquisition by I&M Bank Ltd. The study was guided by the following theories; resource-based view theory, dynamic capabilities theory and signaling theory. This study employed a descriptive research design and this allowed the investigator to describe the variables of interest in terms of their characteristics. The design is suited and justified for use in this study because of the variables to be used. The study will focus on 1030 staffs from I&M Bank Ltd. The study focused on I&M Bank Ltd 14 branches in Nairobi. Structured questionnaire was used to get the primary data. The surveys will be self-administered through drop and pick later approach to the respective staffs of I&M bank. In this study, the researcher used content validity to find out whether the instruments responded to research questions. The content validity of the instrument was determined in two ways. First the researchers discussed the items in the instrument with the supervisor, and randomly reach the staffs. Test-rested method of testing reliability was used where the pilot questionnaires were provided twice to the staffs, with a 7 days‟ interval, to permit reliable testing. The study used Cronbach‟s alpha formula to test reliability, with value of 0.7. This study used descriptive statistics to analyze the collected data.