The Response of Performance to Merger Strategy in Indonesian Banking Industry: Analyses on Bank Mandiri, Bank Danamon, and Bank Permata
This study analyzes the responses of performances of BankMandiri, Bank Danamon, and Bank Permata to merger strategy.This paper harnesses the quantitative approach with structuralbreak analysis method and impulse response function. Theplausible findings indicate that the merger of Bank Permataproduce...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Gadjah Mada
2010-05-01
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| Series: | Gadjah Mada International Journal of Business |
| Online Access: | https://jurnal.ugm.ac.id/gamaijb/article/view/5510 |
| _version_ | 1817997353324380160 |
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| author | Murti Lestari Lincolin Arsyad |
| author_facet | Murti Lestari Lincolin Arsyad |
| author_sort | Murti Lestari |
| collection | DOAJ |
| description | This study analyzes the responses of performances of BankMandiri, Bank Danamon, and Bank Permata to merger strategy.This paper harnesses the quantitative approach with structuralbreak analysis method and impulse response function. Theplausible findings indicate that the merger of Bank Permataproduces a better performance response in comparison to theconsolidation of Bank Mandiri and the merger of Bank Danamon.The merger of Bank Permata does not result in performanceshocks, and the structural break does not prevail either. On theother hand, the consolidation of Bank Mandiri and the mergerof Bank Danamon result in structural breaks, particularly in thespread performance. In order to return to the stable position, themergers of Bank Mandiri and Bank Danamon require a longertime than does the merger of Bank Permata. This researchindicates that for large banks, the mergers and acquisitions(retaining one existing bank) will deliver a better performanceresponse than will the consolidations (no existing bank).
Keywords: impulse response function; merger; structural break |
| first_indexed | 2024-04-14T02:36:54Z |
| format | Article |
| id | doaj.art-ad7f1cfdfbd34aa691cdd753d65c5047 |
| institution | Directory Open Access Journal |
| issn | 1411-1128 2338-7238 |
| language | English |
| last_indexed | 2024-04-14T02:36:54Z |
| publishDate | 2010-05-01 |
| publisher | Universitas Gadjah Mada |
| record_format | Article |
| series | Gadjah Mada International Journal of Business |
| spelling | doaj.art-ad7f1cfdfbd34aa691cdd753d65c50472022-12-22T02:17:23ZengUniversitas Gadjah MadaGadjah Mada International Journal of Business1411-11282338-72382010-05-0112223125510.22146/gamaijb.55104836The Response of Performance to Merger Strategy in Indonesian Banking Industry: Analyses on Bank Mandiri, Bank Danamon, and Bank PermataMurti Lestari0Lincolin ArsyadFaculty of Business, Duta Wacana Christian UniversityThis study analyzes the responses of performances of BankMandiri, Bank Danamon, and Bank Permata to merger strategy.This paper harnesses the quantitative approach with structuralbreak analysis method and impulse response function. Theplausible findings indicate that the merger of Bank Permataproduces a better performance response in comparison to theconsolidation of Bank Mandiri and the merger of Bank Danamon.The merger of Bank Permata does not result in performanceshocks, and the structural break does not prevail either. On theother hand, the consolidation of Bank Mandiri and the mergerof Bank Danamon result in structural breaks, particularly in thespread performance. In order to return to the stable position, themergers of Bank Mandiri and Bank Danamon require a longertime than does the merger of Bank Permata. This researchindicates that for large banks, the mergers and acquisitions(retaining one existing bank) will deliver a better performanceresponse than will the consolidations (no existing bank). Keywords: impulse response function; merger; structural breakhttps://jurnal.ugm.ac.id/gamaijb/article/view/5510 |
| spellingShingle | Murti Lestari Lincolin Arsyad The Response of Performance to Merger Strategy in Indonesian Banking Industry: Analyses on Bank Mandiri, Bank Danamon, and Bank Permata Gadjah Mada International Journal of Business |
| title | The Response of Performance to Merger Strategy in Indonesian Banking Industry: Analyses on Bank Mandiri, Bank Danamon, and Bank Permata |
| title_full | The Response of Performance to Merger Strategy in Indonesian Banking Industry: Analyses on Bank Mandiri, Bank Danamon, and Bank Permata |
| title_fullStr | The Response of Performance to Merger Strategy in Indonesian Banking Industry: Analyses on Bank Mandiri, Bank Danamon, and Bank Permata |
| title_full_unstemmed | The Response of Performance to Merger Strategy in Indonesian Banking Industry: Analyses on Bank Mandiri, Bank Danamon, and Bank Permata |
| title_short | The Response of Performance to Merger Strategy in Indonesian Banking Industry: Analyses on Bank Mandiri, Bank Danamon, and Bank Permata |
| title_sort | response of performance to merger strategy in indonesian banking industry analyses on bank mandiri bank danamon and bank permata |
| url | https://jurnal.ugm.ac.id/gamaijb/article/view/5510 |
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