© 2014 Research Academy of Social Sciences http://www.rassweb.com 80 International Journal of Financial Economics Vol. 3, No. 2, 2014, 80-91 Post-Merger Analysis of the Financial Performance of SG SSB Samuel Gameli Gadzo 1 , John Gartchie Gatsi 2 , Richard Kofi Akoto 3 Abstract The study focused on the post merger analysis of the financial performance of SG-SSB. Data for a ten year period from 2004 to 2013 was used to analyse the financial performance. The analysis and discussion of the data point to three key findings. First, the study revealed that there is a significant difference in the financial performance of the bank’s pre acquisition and post acquisition periods. In relation to the determinants of the post acquisition financial performance of the bank, it was found that, the mergers and acquisition of SG-SSB has had a positive impact on the financial performance of the bank. It was also found that, macro economic variables have an adverse relationship with the financial performance of the bank. It is therefore recommended that SG-SSB should strengthen its banking processes to enhance efficiency of operations and further improve the liquidity of the bank. Keywords: Merger and Acquisition, SG-SSB, Financial Performance 1. Introduction The major survival strategy for most businesses has been inorganic growth strategy gain through mergers and acquisitions. The overall net effect of mergers and acquisitions (M&As) transactions appears to be positive. Almost all studies report positive returns for the investors in the combined buyer and target firms. This implies that M&A creates economic value, presumably by transferring assets to management teams that operate them more efficiently. Ross, Westerfield, Jaffe, and Jordan (2011), explained that merger is a complete absorption of one firm by another, thereby the acquiring firm retain its name and identity, and it acquires all of the assets and liabilities of the acquired. As companies merge, there is a danger that their large size makes them monopolistic and a threat to effective competition. To a large extent, this merger and acquisition activity is based on a belief that gains can accrue through expense reduction, increased market power, reduced earnings volatility, and scale and scope economies. Most importantly shareholder wealth can also be increased. As with any other business activity, mergers and acquisitions can be part of management’s overall strategy to maximize shareholder value (Hoyle, Schaefer & Doupnik, 2001). Again, merger and acquisition activity has the potential to increase efficiency and profitability in the sector through the benefits of synergy, the transfer of efficient managerial and operational practices, an increased capital base and the expansion of product lines (Pilloff, 1996). Kang and Johansson (2000) strictly defined merger and acquisition, to occur when an operating enterprise acquires control over the whole or part of the business of another enterprise. Merger has been defined as the combination of two or more separate firms into a single firm. The firm that results from the process could take any of the following identities: Acquirer identity or a complete new identity (Hitt, Hoskisson& Ireland, 2007). Rao and Sanker, (1997) also revealed mergers, amalgamations and takeovers as important features of corporate structural changes. A merger takes place when the shareholders of a company vote to dissolve their company and sell the asset to another company (Marfo-Yiadom, 2009). According to Hoyle , Schaefer and Doupnik(2001), the business community is 1 Lecturer, Department of Business Education; University of Education, Winneba Ghana 2 Senior Lecturer Department of Accounting and Finance School of Business, University of Cape Coast Ghana 3 Lecturer, Department of Banking and Finance, University of Professional Studies Accra Ghana