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Pre-evaluating technical efficiency gains from possible mergers and acquisitions: evidence from Japanese regional banks

Halkos, George E.; Matousek, Roman; Tzeremes, Nickolaos G.

Authors

George E. Halkos

Roman Matousek

Nickolaos G. Tzeremes



Abstract

This study focuses on bank mergers and acquisitions (M&As) and applies a DEA based procedure that allows us to pre-evaluate technical efficiency gains from possible M&As in the Japanese regional banking sector. This approach provides a strategic tool for policy-makers to pre-evaluate possible M&As decisions based on performance criteria that are measured in terms of technical efficiency gains. The results clearly show that possible M&As formed by the smaller banks performed better compared with the possible M&As formed by the larger banks. Moreover, our findings imply that small regional banks will have possible efficiency gains when they merge with neighboring banks, whereas larger banks appear to have efficiency gains from merging with distant banks.

Journal Article Type Article
Publication Date 2016-01
Journal Review of Quantitative Finance and Accounting
Print ISSN 0924-865X
Electronic ISSN 1573-7179
Publisher Springer Verlag
Peer Reviewed Peer Reviewed
Volume 46
Issue 1
Pages 47-77
APA6 Citation Halkos, G. E., Matousek, R., & Tzeremes, N. G. (2016). Pre-evaluating technical efficiency gains from possible mergers and acquisitions: evidence from Japanese regional banks. Review of Quantitative Finance and Accounting, 46(1), 47-77. doi:10.1007/s11156-014-0461-5
DOI https://doi.org/10.1007/s11156-014-0461-5
Keywords Banks efficiency; Data Envelopment Analysis, Japan; Mergers and acquisitions JEL Classification C14; C60; G20; G34
Publisher URL https://link.springer.com/article/10.1007/s11156-014-0461-5
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