Merger and acquisition (M&A) is a growth policy for business to achieve desire objectives. Its importance is showed by the number of transaction in the previous year. Thus, this study is conducted to know about the influence of M&A on firm performance. The current study is to identify the influence of M&A (pre and post) on bidding banks in Pakistan. And then to analyze factors of firm, industry and countrylevel effect the financial performance of M&A firms. For this purpose, selected 51 listed bidder banks during 2002-2013 and used descriptive statistics, Z test, and regression models for analysis. Results show that M&A is failed to produce a fruitful result for bidding banks in Pakistan. Hence, recommended that direction and practical implication are provided to banks, investors, and policymakers to get knowledge about M&A to secure their investment from financial losses.

Merger and acquisition is the strategy used by banks to expand its development process. In the current study operating and market performance has been assessed of the Banks exercised the M&A by taking the data from 2005-17. The main focus of the study is to evaluate the Banks performance using data collected from nine banks gone through the merger and acquisition strategy with the help of ordinary least square model. The results show significant relationship operating performance but insignificant relation with market performance. Findings provided an opportunity for the Banks to study and utilize the M&A strategy for capturing market share and further development in the competitive market. Furthermore, a glimpse for potential investors has been provided who want to create a profitable portfolio according to market concentration. The implications demands that proper improvement should be considered for the mechanism and regulatory policies to ensure the security of Banks.