Pairwise X-efficiency combinations of merging banks: analysis of the fifth merger wave
Review of Quantitative Finance and Accounting, 2013, vol. 41, issue 1, 28 pages
Using the non-parametric data envelopment approach, the long-run profit efficiency of nine pre-classified merger deals of merging and non-merging U.S. banks is investigated during the period from 1992 to 2003 for a sample of 359 merger deals. The findings show that, in general, large acquirers have and maintain higher efficiency scores than targets and non-merging banks. The results also show that merger deals that match least efficient acquirers with the least efficient targets could improve their profit efficiency 4 years following the merger event, which is different than all other merger deals. Finally, value-maximizing mergers are determined to be mostly large and match banks with clear opportunities to increase their future efficiency rankings. Copyright Springer Science+Business Media, LLC 2013
Keywords: Bank mergers; X-efficiency; Data envelopment analysis; Pairwise efficiency; Performance dynamics; G34; G21; D61 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:kap:rqfnac:v:41:y:2013:i:1:p:1-28
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