دراسات العدد الاقتصادي
Volume 17, Numéro 1, Pages 145-162
2026-01-30

Investigating The Role Of Mergers And Acquisitions In Shaping The Financial Performance Of Nepalese Commercial Banks

Authors : Lama Padam Bahadur . Budhathoki Prem Bahadur . Thapa Samjhana .

Abstract

This research paper examined the impact of mergers and acquisitions on the financial performance of Nepalese commercial banks. The study embraced the secondary data of 6 commercial banks and overall, the 60 observations were comprised in this study. The study employed descriptive research design and casual comparative research design. This study employed descriptive statistics, correlation, and regression for the analysis of data. The findings revealed that the EPS and CRR were positively and significantly associated with return on equity (ROE) which indicates that an increase in earnings per share and cash reserve ratio leads to an increase in profitability. In contrast, NPLR, CAR, and CDR found a negative relationship with ROE, which indicates that an increase in the non-performing loan ratio, capital adequacy ratio, and credit-to-deposit ratio leads to a decrease in profitability. Similarly, BS holds a weak positive relationship with ROE.

Keywords

Acquisition, financial performance, merger, Nepalese banks