The Evaluation of Bank Efficiency in Post Merger Stage in Banking Industry

This research evaluated the technical efficiency of the banks before and after the merger. This research observed 15 banks which involve in merger activities. This research used the Data Envelopment Analysis (DEA) method with variables of returns to scale (VRS) and input orientation. Analysis of var...

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Bibliographic Details
Main Author: Rahmat Siauwijaya
Format: Article
Language:English
Published: Bina Nusantara University 2017-08-01
Series:Binus Business Review
Subjects:
Online Access:https://journal.binus.ac.id/index.php/BBR/article/view/1452
Description
Summary:This research evaluated the technical efficiency of the banks before and after the merger. This research observed 15 banks which involve in merger activities. This research used the Data Envelopment Analysis (DEA) method with variables of returns to scale (VRS) and input orientation. Analysis of variance (ANOVA) was also applied to test the difference between the technical efficiency in pre- and post-merger activities. This research finds that only six banks are efficient after the merger. Furthermore, four banks have a better technical efficiency than before, and five banks have lower technical efficiency after the merger.
ISSN:2087-1228
2476-9053