Corporate Governance and Post-M&A Performance in the Banking Industry: A Study

Authors

  • Pratibha Jena Research Scholar, Sri Sri University, Orcid id - 0009-0004-0588-9037
  • Vishal Sood Ph.D., MPhil, MBA, Sri Sri University Cuttack, INDIA-754006, ORCID: 0000-0002-7888-4884

DOI:

https://doi.org/10.69968/ijisem.2026v5i3233-246

Keywords:

Banking Industry, Corporate Governance, Financial Performance, Mergers and Acquisitions, Post-M&A Integration, Risk Management, Transparency

Abstract

Corporate governance in the banking sector is essential for the success of mergers and acquisitions (M&A) since it significantly influences post-M&A performance. This research analysed the impact of corporate governance rules on post-merger and acquisition (M&A) performance, along with the key governance domains influencing financial stability and operational success. The research used quantitative methods and regression analysis to investigate governance frameworks and performance metrics after mergers and acquisitions. The results were gathered from 385 respondents of the questionnaire. The study identified a significant positive correlation between governance quality and performance after mergers and acquisitions. The research revealed that leadership, decision-making, risk management, compliance, and transparency were essential. The research demonstrated that exemplary governance enhances financial performance, operational efficiency, and stakeholder confidence. The research emphasized the need of systematic governance during integration. This research aims to enhance theoretical and practical understanding of the impact of corporate governance frameworks on banking mergers and acquisitions. It synthesizes many governance theories, including Agency Theory and Stakeholder Theory, together with their practical implications to enhance the understanding of governance methodologies. The suggestions of the study will enhance governance in mergers and acquisitions for banking executives and practitioners. The study's authors advocate for enhancing governance procedures and examining the long-term impacts of governance on integration success. The study demonstrated that effective corporate governance maintains performance after mergers and acquisitions.

References

[1] Angwin, D. (2015). Agency theory perspective. Advanced Strategic Management. 2nd edn. London: Palgrave, 154-177.

[2] Apreku-Djan, P., Ameyaw, F., Ayittah, S., Opare, E., & Apreku, I. (2022). The Impact of Merger and Acquisition Motives on Value-Based Financial Performance of Banks. International Journal of Academic Research in Economics and Management Sciences. https://doi.org/10.6007/ijarems/v11-i2/13236.

[3] Bellomo, M., & Pellerone, M. (2018). CORPORATE GOVERNANCE IN BANKING INDUSTRY: REVIEW AND RESEARCH PERSPECTIVES. . https://doi.org/10.31410/itema.2018.476.

[4] Casciaro, T., & Piskorski, M. J. (2004). Power imbalance and interorganizational relations: resource dependence theory revisited. Academy of Management, 1-57.

[5] Delis, M. D., Iosifidi, M., Kazakis, P., Ongena, S., & Tsionas, M. G. (2022). Management practices and M&A success. Journal of Banking & Finance, 134, 106355.

[6] Didenko, A., Panibratov, A. Y., & Tylevich, T. A. (2021) IMPACT OF BOARD OF DIRECTORS COMPOSITION ON M&A DECISION AND POST-M&A PERFORMANCE IN CROSS-BORDER M&A TRANSACTIONS: THE CASE OF EMERGING MARKET FIRMS.

[7] Drees, J. M., & Heugens, P. P. (2013). Synthesizing and extending resource dependence theory: A meta-analysis. Journal of management, 39(6), 1666-1698.

[8] Fahad, M., Hamid, K., Aslam, M., Saeed, M. Y., & Abbas, Y. (2025). The impact of pre and post-mergers and acquisitions on the financial performance of selected banks in Pakistan. iRASD Journal of Economics, 7(1), 01–23.

[9] García, C. J., & Herrero, B. (2022). Corporate entrepreneurship and governance: Mergers and acquisitions in Europe. Technological Forecasting and Social Change, 182, 121845.

[10] Greve, H. R., & Man Zhang, C. (2017). Institutional logics and power sources: Merger and acquisition decisions. Academy of Management Journal, 60(2), 671-694.

[11] He, C., & Chen, H. (2022). Performance compensation commitment and long-term M&A performance. Applied Economics Letters, 30, 2978 - 2982. https://doi.org/10.1080/13504851.2022.2117269.

[12] Hussain, S. (2014). The Assessment of Operational Efficiency of Commercial Banks in India Using Cost to Income Ratio Approach. International Journal of Management and Business Research, 4, 225-234.

[13] Hussain, T., Kryzanowski, L., Loureiro, G., & Sufyan, M. (2024). Enhancing corporate governance quality through mergers and acquisitions. Journal of International Financial Management & Accounting. https://doi.org/10.1111/jifm.12203.

[14] Irfan, M., Nadeem, A., Usman, M., Hassan, W. U., & Amin, M. S. (2023). Corporate governance and performance of financial institutions: Case study of mergers and acquisitions in Pakistan. Journal of Asian Development Studies, 12(3), 1364–1376.

[15] Jiang, H., Luo, Y., Xia, J., Hitt, M., & Shen, J. (2023). Resource dependence theory in international business: Progress and prospects. Global strategy journal, 13(1), 3-57.

[16] Kiessling, T., Vlačić, B., & Dabić, M. (2021). Mapping the Future of Cross-Border Mergers and Acquisitions: A Review and Research Agenda. IEEE Transactions on Engineering Management, 68, 212-222. https://doi.org/10.1109/TEM.2019.2954799.

[17] Leepsa, N. M., & Mishra, C. S. (2016). Theory and practice of mergers and acquisitions: Empirical evidence from Indian cases. IIMS Journal of management science, 7(2), 179-194.

[18] Mohamed, I. M. A., & Salah, W. (2016). Investigating corporate social responsibility disclosure by banks from institutional theory perspective. Journal of Administrative and Business Studies, 2(6), 280-293.

[19] Nguyen, N., Phan, H., & Simpson, T. (2019). Political Corruption and Mergers and Acquisitions. Law & Society: Public Law - Antitrust eJournal. https://doi.org/10.2139/ssrn.3185775.

[20] Oira, S. (2024). Post-Merger Commercial Bank Performance Trends: A Case of Kenya. Journal of Finance and Accounting. https://doi.org/10.53819/81018102t4259.

[21] Otieno, O. W., & Jepkosgei, C. B. (2024). Impact of Mergers and Acquisition on Financial Performance of Commercial Banks in Kenya (A Survey of Commercial Banks in Kenya). European Academic Journal-I, 3(001).

[22] Rani, P., Shauki, E. R., Darminto, D., & Prijadi, R. (2020). Motives, governance, and long-term performance of mergers and acquisitions in Asia. Cogent Business & Management, 7(1), 1791445.

[23] Sahin, K., & Mert, K. (2023). Institutional theory in international business studies: the period of period of 1990–2018. International Journal of Organizational Analysis, 31(5), 1957-1986.

[24] Saleh, M. (2022). Indonesian banking performance of pre and post of mergers and acquisitions. TRIKONOMIKA, 21(1), 1–7.

[25] Salim, R., Arjomandi, A., & Seufert, J. (2016). Does corporate governance affect Australian banks' performance?. Journal of International Financial Markets, Institutions and Money, 43, 113-125. https://doi.org/10.1016/J.INTFIN.2016.04.006.

[26] Salim, R., Arjomandi, A., & Seufert, J. (2016). Does corporate governance affect Australian banks' performance?. Journal of International Financial Markets, Institutions and Money, 43, 113-125. https://doi.org/10.1016/J.INTFIN.2016.04.006.

[27] Satyanarayana, K., Surya, K., Rao, A., Abbas, Q., Hunjra, A., Azam, R., Shahzad, M., Maliha, I., Saeed, R., Ijaz, M., Al-Sharkas, A., Hassan, M., & Lawrence, S. (2023). Mergers and Acquisitions in Banking A study on Financial Performance and Capital Structure Changes. Journal of Advanced Zoology. https://doi.org/10.17762/jaz.v44is-5.970.

[28] Schmeidl, M. G. (2019). Stakeholder conflict in mergers and acquisitions and the importance of post-merger integration (Doctoral dissertation, Universität Tübingen).

[29] Segal, S. A. (2023). Understanding and managing dynamic stakeholder relationships around mergers and acquisitions (Doctoral dissertation, Macquarie University).

[30] Sengar, N., Badhotiya, G., Dobriyal, R., & Singh, D. (2021). Study of post-merger effect on performance of banks in India. Materials Today: Proceedings. https://doi.org/10.1016/J.MATPR.2021.01.671.

[31] Sghaier, A., & Hamza, T. (2024). CEO power and risk taking: evidence from European banks mergers and acquisitions. Journal of Strategy and Management. https://doi.org/10.1108/jsma-05-2024-0098.

[32] Shakil, M., Mahmood, N., Tasnia, M., & Munim, Z. (2019). Do environmental, social and governance performance affect the financial performance of banks? A cross-country study of emerging market banks. Management of Environmental Quality: An International Journal. https://doi.org/10.1108/meq-08-2018-0155.

[33] Singh, S., & Das, S. (2018). Impact of post-merger and acquisition activities on the financial performance of banks: A study of Indian private sector and public sector banks. Revista Espacios Magazine, 39(26), 25.

[34] Ullah, N., Nor, F. M., Seman, J. A., Ramli, N. A. B., & Rasedee, A. F. N. B. (2023). The impact of bank size on pre-and post-merger and acquisition performance and stability: New evidence from GCC and Pakistan. International Journal of Professional Business Review, 8(11), 14.

[35] Wang, C., Xie, F., & Zhu, M. (2015). Industry Expertise of Independent Directors and Board Monitoring. Corporate Finance: Governance. https://doi.org/10.2139/ssrn.2230911.

[36] Woodman, J. M. (2017). Agency theory, behavioral agency model & stewardship theory and their relationship with succession in family firms: A literature review. Pontifical Catholic University of Peru.

[37] Worek, M. (2017). Mergers and acquisitions in family businesses: current literature and future insights. Journal of Family Business Management, 7, 177-206. https://doi.org/10.1108/JFBM-04-2016-0009.

Downloads

Published

03-08-2026

Issue

Section

Articles

How to Cite

[1]
Pratibha Jena and Vishal Sood 2026. Corporate Governance and Post-M&A Performance in the Banking Industry: A Study. International Journal of Innovations in Science, Engineering And Management. 5, 3 (Aug. 2026), 233–246. DOI:https://doi.org/10.69968/ijisem.2026v5i3233-246.