Assessment of Anxiety Disorder among Employees Who Have Encountered Mergers and Acquisitions: A Case of Access Bank (Kenya) Plc, Nairobi County, Kenya

Abstract

Mergers and acquisitions transactions involve detailed analysis of an organization’s financial, technical, people, legal soundness and deal price negotiations that extend for long periods, sometimes over three years. Mergers and Acquisitions can be optimized to overcome the negative impact on employees with effective integration, cross-level communication, and consideration of the financial, operational, and cultural aspects of the involved companies. This research problem was studied through the use of a survey descriptive research design. The target respondents included the 156 employees across different levels (Senior management, Mid-level management and junior level management) from Access Bank Kenya. A sample of 156 respondents was selected from within each group in proportions that each group bears to the study population. The study used a survey questionnaire administered to each member of the sample population. The study administered the questionnaire individually to all respondents of the study. Quantitative data collected was analyzed by the use of descriptive statistics using SPSS Version 28 and presented through percentages, means, standard deviations and frequencies. Inferences were made by testing relationships among variables using Karl Pearson Correlation and multiple regression analysis. The study found a high prevalence of anxiety among employees who encountered the merger between Access Bank (Kenya) PLC and Transnational Bank Ltd, with 71.7% of participants reporting mild to severe anxiety symptoms. No significant associations were found between anxiety levels and socio-demographic factors such as gender (χ² = 0.001, p = 0.975), age (χ² = 1.649, p = 0.800), or education level (χ² = 5.619, p = 0.345). The most frequently employed positive coping strategies were participating in hobbies or leisure activities (M = 3.87), actively seeking information about the merger process (M = 3.65) and utilizing relaxation techniques (M = 3.31). Regression analysis revealed that positive coping strategies were negatively associated with anxiety levels. Participating in hobbies or leisure activities (β = -0.187, p = 0.016), actively seeking information about the merger process (β = -0.164, p = 0.036), and utilizing relaxation techniques (β = -0.175, p = 0.028) showed significant negative associations with anxiety levels. In contrast, seeking support from colleagues, friends, or family members (β = 0.235, p = 0.003) and seeking professional assistance (β = 0.181, p = 0.019) showed positive associations with anxiety levels. This unexpected result might indicate that employees experiencing higher anxiety levels were more likely to seek support or professional help, rather than these strategies increasing anxiety. The study found that positive coping strategies like engaging in hobbies, seeking information about the merger, and using relaxation techniques were associated with lower anxiety levels among employees during the merger process.