CHAPTER THREE

METHODOLOGY

3.1 Introduction
The methodology for the study is discussed in this chapter. The chapter covered the study area,
research design, population and sample size, sampling technique, sources of data and
instruments, data analysis and presentation.

3.2 Type of Research

This research was basically descriptive in nature. However, to find out the Effect of Mergers
and Acquisitions quantitative and qualitative methods are used. Descriptive research determines
and report the way things are. Descriptive research thus, involves collecting data to test
hypothesis or answer research question concerning the status of the subject of the study (Gay,
1992).

3.3 Research Design

The essence of the research design is to contribute to answering the specific research questions
and meeting the objectives of the study. The researcher employed a descriptive research method
which is useful when a researcher wants to collect data on phenomena, for instance, opinions on
an organization’s services or performance. A descriptive research design is a scientific method,
which involves observing and describing the behaviors of a subject without influencing it in any
way.
According to Creswell (2014) the aim of descriptive research is to verify formulated prepositions
that refer to the present situation to explain it; descriptive approach is quick and practical, and
this method allows a flexible approach, thus, when important new issues and questions arise
during the study, further investigation may be conducted. Hence, the descriptive method is
advantageous to the researcher due to its flexibility, giving the researcher greater options in
selecting the instrument for data gathering.

3.4 Population and Sample Size

One hundred (100) employees and management of Fidelity Bank constituted the sample of
interest. Views from these respondents were examined to assess the effect of M&A activities on
the performance of banks in Ghana using purposive sampling a non-probability sampling
technique. This is because the interests of this study fall within their area. According to Dillman
(2000), a sample size of 100 and above is sufficient to present good research findings and
provide good representation of the population or any subject investigated.

Study Organisation

Fidelity set out to become a world-class financial institution that provides superior returns for all
stakeholders. People who are professional and proactive, state of the art technology, exceptional
Corporate Governance standards, good knowledge of the Local Market, and above all, a
Customer-Centric Culture.

Fidelity commenced business in October 1998 as a Discount House. Fidelity Discount House

attracted a rich client base and was noted for its innovative and attractive investment product
offerings, making her the discount house of choice. With the quality of services offered, our
customers requested for a deeper and richer business relationship, making it logical to move into
the banking sector. On the 28th of June 2006, we obtained a universal banking license.

We have since become a household name in Ghana by delivering on our promise to make a
difference in the lives of our stakeholders (shareholders, employees, customers, regulators, and
community as a whole).

We carefully handpicked and groomed a team of high caliber professionals with diverse skills
and experience; invested heavily in technology and training to ensure that we are at par with the
best in the world. We continually offer a comprehensive range of innovative products and
services to meet the banking and financial needs of our existing and potential
customers.   Fidelity Bank is contributing its quota to the development of the banking industry
and by extension the Ghanaian economy.

Within six months of opening our doors for business, we had already broken even, a remarkable
feat that set the stage for our expansion which can be found not only in our steadily growing
network of branches, mobile banking platform and in our solid base of satisfied customers, but in
the various awards we have garnered in the industry for customer service, digital product
offerings, trade deals, human resource, corporate social responsibility, and overall best bank. We
have won more than 60 awards for excellence since our inception.
In delivering on her promise to affect the community, on the 1 st of October 2014, the Bank
acquired ProCredit Savings and Loans Company Limited (PCSL) from ProCredit Holding
Germany (PCH) and the DOEN Foundation of the Netherlands. PCSL was a non-bank financial
institution that provided savings and lending services to its individual, small, and medium
enterprise clients.

The continued growth of the Bank culminated in the establishment of Fidelity Asia Bank Limited
(FABL) in Labuan, Malaysia in July 2012 as a wholly owned Asian subsidiary in Malaysia.
FABL carries on the business of offshore banking.

Investment banking has always been a key pillar in the overall strategy of the bank, thus, Fidelity
Securities Limited (FSL), a fully owned subsidiary of the bank, was incorporated as the
investment banking arm of the bank. Formerly known as Fidelity Asset Management, FSL’s
business involves providing advisory services, issuing of securities, raising of capital, and
undertaking portfolio investment management for clients.

Currently, a tier 1 bank, Fidelity is committed to becoming a top 3 bank in Ghana with
international standards. 

3.6 Sampling and Sampling Technique

Sampling is the selected part of a study population or a subset of a population. The study
population is the population from which sample is to be drawn. The researcher opted for
convenience sampling because it is a non-probability sampling technique where subject is
selected because of their convenient accessibility and proximity to the researcher.
( www.academia.edu.) Purposive sampling technique was used to assess the views of the
respondents on the subject under study. A purposive sample is one in which a researcher tries to
create a representative sample without sampling at random. In other words, purposive sampling
targets a particular group of people. The importance of purposive sampling lies in selecting
information rich cases, for in-depth analysis related to the central issue being studied (Creswell
(2014)).
The study adopts the sample size formula for finite population proposed by Krejcie and Morgan
(1970). From their table, a sample size of 80 is appropriate for a finite or known target
population of 100. According to Krejcie and Morgan, there is no need of using sample size
determination formula for ‘known’ population since the table has all the provisions one requires
to arrive at the required sample size. The sample size was therefore 80.
3.7 Sources of Data and Instruments

Data refers to any information obtain about a sample. The source of data was primary data. The
source of primary data was from some selected members of management and employees with the
reason being that these respondents are suitable people who could give the required information
to make this research a success. A well-structured questionnaire was used as the main instrument
for data collection. It comprised of both open and close-ended questions. Close-ended questions
were used to streamline response from respondent to suit the objective of the research
information. The questionnaires were structured in a simple form to make it easy for the
respondents to understand. The reason behind using questionnaire is that they are less expensive,
devoid of interviewer bias and help in eliciting the needed information from the respondents.
3.8 Data Analysis and Presentation
This section involves the application of the appropriate statistical analysis to generate results that
can be discussed meaningfully to meet the research objectives. This was analyzed or discussed
using simple frequencies and percentage distribution with the help of Microsoft Office (MS
Excel).