Tag Archives: Market Share

Can Strategic Entrepreneurship Sustain the Market Share of Nigerian Textile Manufacturing Firms (Published)

This paper investigates how strategic entrepreneurship triggers and sustain market share with emphasis on strategic flexibility, adaptability, innovation, strategic leadership, risk taking and dynamic capabilities. The study utilized quantitative method through cross-sectional research design. Primary data were sourced through an adapted questionnaire. Internal consistency confirmed the reliability of the instrument while the content, construct, and criterion validity were acknowledged. Out of the fifteen textile firms in Lagos State, three textile manufacturing organizations were purposively selected with a population of 253 senior management employees. Total enumeration was applied and 237 copies of the questionnaire were retrieved. An econometric model was developed and multiple regression was applied as data analysis method. The findings indicated that strategic entrepreneurship has a significant effect on market share (adjusted R2 =0.353 (F(6, 230) = 22.444, p=0.000). However, the individual coefficient results, identified dynamic capabilities, strategic flexibility and adaptability to have exhibited positive and significant effect on firm profitability. The study recommended institutionalization of adaptive inventiveness, litheness in the areas of adaptability, strategic flexibility, and dynamic capabilities to sustain market share.

Keywords: Market Share, Strategic Entrepreneurship, dynamic capabilities, strategic flexibility

EFFECTS OF MERGERS AND ACQUISITIONS ON SHAREHOLDERS’ WEALTH IN NIGERIAN BANKING INDUSTRY (Published)

Mergers and acquisitions that took place in Nigerian Banking Industry in 2005 were to create wealth for shareholders, provide solid and reliable banking institutions that can compete favourably with foreign financial institutions. Going by market value of the merged banks, shareholders wealth had been eroded, in some cases completely destroyed. The visible problems that confront the shareholders of merged banks include melt down of market prices of their shares on the stock market, depletion of shareholders fund due to huge losses incurred by the merged banks and lack of dividend pay out to the shareholders. Exploratory and correlation research designs were used. The population of this study is twenty five (25) consolidated banks as at 1st January, 2006. Stratified Sampling technique was adopted to arrive at fifteen (15) merged banks. Questionnaires were distributed to the staff of the merged banks. The instrument was validated and Cronbach’s Alpha coefficient result of 0.708 was obtained indicating the internal consistency of the instrument. Five hundred and fifty-seven (557) questionnaires were administered and a response rate of 58.3% was obtained. The findings of study showed that there was a significant relationship between shareholders wealth and capital base (ρ- value of 0.000), market share (ρ- value of 0.000), bank revenue (ρ- value of 0.000), cost savings (ρ- value of 0.000). The study concluded that mergers and acquisitions have positive effect on the shareholders wealth. The implication of findings is that, new capital brought in by shareholders of merged banks increase the size of banks total assets and revolutionized the way banks do their business. The study recommends that banks’ management should give proper attention to scope and scale of economies; eliminate redundancy, corrupt and inefficient staff; it is imperative for shareholders to always bring in fresh capital and Government should give bail-out loans to banks in distress.

Keywords: Bank Revenue, Capital Base, Cost Savings, Market Share, Mergers and Acquisition, Shareholders Wealth

The Structure, Conduct and Performance of Commercial Banks in Ghana (Published)

This paper analyses the structure, conduct, and performance of commercial banks in Ghana. The empirical investigation uses two different measures of concentration to represent market structure and a market share variable to capture the effect of Market conduct on bank performance, and two accounting measures: return data on Return on Assets (ROA), return on equity (ROE) to represent banks’ performance. Annual time series data ROA, ROE and other ratios were collected from nineteen commercial banks over the period 2007 -2012. The results indicated that market concentration and market share significantly determines profitability in Ghana, signifying the strong acceptance of the SCP hypothesis. Consequently, the research suggests the need for improvement in bank capitalization, bank size, service product innovation and effective liquidity management for the Ghanaian banking industry

Keywords: Assets, Concentration, Conduct, Deposits, Market Share, Performance, Structure