Public sector general insurance companies in India: potential gains from merger

Ram Sinha

International Journal of Business and Globalisation, 2017, vol. 19, issue 1, 79-92

Abstract: The Indian general insurance industry underwent major structural changes in terms of competition, economies of scale and scope and pricing during the last 15 years as a result of the deregulation of the insurance market since 1999. The entry of the new general insurance companies resulted in a decline in the market share of the public sector general insurance companies to a level of 55%. Against this backdrop, the present study evaluates the potential gains from merger of public sector general insurance companies using data envelopment analysis for the years 2012-2013 and 2013-2014. The study computes overall efficiency gains and decomposes the same into learning, scale and scope effects. The results reveal that the overall potential gain from the merger is negative for both the years due to the presence of strongly negative scale effect.

Keywords: institutional roles; external corporate control; merger; potential gains; pure gains; learning gains; firm performance; general insurance; data envelopment analysis; DEA; non-parametric approach. (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.inderscience.com/link.php?id=85106 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbglo:v:19:y:2017:i:1:p:79-92

Access Statistics for this article

More articles in International Journal of Business and Globalisation from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().