| dc.description.abstract | Insurance Companies mergers play a vital role in insurance industry corporate finance
by enabling firms achieves varied objectives and financial strategy. In Kenya,
insurance companies have been merging with the goal of improving their overall
financial performance. Studies done on mergers have not conclusively established
whether or not insurance companies in Kenya benefit from mergers. Most studies
have observed that insurance companies’ mergers did not lead to an improvement in
financial performance as indicated in their profitability and earnings ratios. This study
sought to discover, identify and uncover how change management, culture
integration, personnel management and management integration are likely to
influence the financial performance of the merged insurance firms in Kenya.
Therefore a structured literature review was conducted to identify relevant theoretical
and empirical evidence where merged insurance companies financial performance and
its dependencies of change management, culture, personnel management and
management integration are discussed. A conceptual framework was formulated
evolving around the dependent variable of financial performance of merged insurance
companies and the independent variables of change management, culture, personnel
management and management integration. The theories utilized were the Production
theory, market imperfection theory, differential efficiency theory, synergy, pure
diversification and hubris hypothesis. The study employed a descriptive research
design. The target population of this study was CEO, CFO, Strategic managers and
Project managers of 15 merged insurance companies in Kenya between 2002 and
2017. The study employed a purposive sampling procedure in coming up with a
sample size of 100 respondents. The study generated quantitative data where
quantitative data was coded and entered into statistical packages for social sciences
(SPSS Version 17.0) and analyzed using descriptive statistics. The study utilized a
questionnaire distributed through drop and picked later method. The study found that
most (74%) of the respondents were male and (26%) were female. Additionally, 58%
of the respondents were graduate students. The study found a positive and significant
relationship between all independent variables and the dependent variable. Personnel
integration had the most significant impact on financial performance of merged
insurance, followed by culture integration, management integration and change
management. This study discussed the theoretical significance and adds to the
literature on mergers of insurance companies in Kenya. The study concluded by
recommending that organisations should consider change management, culture,
management integration and personnel management since it positively influences the
financial performance of insurance companies. | en_US |
