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

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

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.

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

• Journal Article Type: Article
• Acceptance Date: May 27, 2014
• Online Publication Date: May 27, 2014
• Publication Date: 2016-01
• Deposit Date: Mar 11, 2019
• 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
• 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
• Public URL: https://nottingham-repository.worktribe.com/output/1625527
• Publisher URL: https://link.springer.com/article/10.1007/s11156-014-0461-5