THE INFLUENCE OF CULTURAL DIVERSITY ON SUCCESSFUL MERGERS ANDACQUISITIONS IN NIGERIA’S BANKING INDUSTRY


ATURU-AGHEDO, Calorine
Department Of Business Administration
National Open University Of Nigeria
caturu-aghedo@noun.edu.ng
+2348033060214

CHUKWUMA, Nancy Nnena
Department Of Business Administration
National Open University Of Nigeria
nnchukwuma@noun.edu.ng
+2348033102878


OKHIRIA, Vincent Omozojie
Department Of Business Administration
National Open University Of Nigeria
okhiriavincent@yahoo.com or nou215000415@noun.edu.ng
+2348060966466

ABSTRACT
The main aim of this study was to examine the influence of cultural diversity on successful mergers and
acquisitions in the banking industry in Nigeria. A total of two hundred (200) copies of the questionnaire
were administered to small-scale entrepreneurs in some selected areas in Lagos state while one hundred
and sixty-two (162) were fully completed and returned. The analysis was carried out using Statistical
Packages for Social Science (SPSS). Simple percentages were adopted to analyze the responses of the
questionnaire while linear regression statistics were used to analyze the hypotheses raised in this study.
The findings show that there is a strong and positive relationship between gender, ethnicity and religious
beliefs and successful mergers and acquisitions in the banking industry in Nigeria. The study therefore
concluded that there is a strong and positive relationship between cultural diversity and successful
mergers and acquisitions in Nigeria‘s banking industry. It was recommended that if (the) management of
banks in the banking sector in Nigeria are (is) engaged in the process of mergers and acquisitions they
should also consider, among others, the integration of cultural diversity after the merger or acquisition to
ensure the success of the arrangement. That a bank intending to acquire another bank should in its preacquisition due diligence also take into account the harmonization of cultural diversity of the intending
subsidiary with the parent bank. Further studies should focus on other aspects of cultural diversity (such
as race, age, nationality, and so on) in relation to mergers and acquisitions.

Keywords: Cultural diversity, Mergers, Acquisitions

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