Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia / Mahadzir Ismail ... [et al.]

The Financial Master Plan (2001- 2010) aims to enhance the capacity of banking industry so that higher effic iency and productivity can be reaped in the future. This study seeks to determine the impact of merger on the efficiency and productivity ofcommercial banks in Malaysia for the period 1995 u...

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Main Authors: Ismail, Mahadzir, Sulaiman, Saliza, Abdul Rahim, Hasni, Nordin, Nordiana
Format: Article
Language:English
Published: Research Management Institute (RMI) 2008
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/13053/1/AJ_MAHADZIR%20ISMAIL%20SMRJ%2008%201.pdf
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author Ismail, Mahadzir
Sulaiman, Saliza
Abdul Rahim, Hasni
Nordin, Nordiana
author_facet Ismail, Mahadzir
Sulaiman, Saliza
Abdul Rahim, Hasni
Nordin, Nordiana
author_sort Ismail, Mahadzir
collection UITM
description The Financial Master Plan (2001- 2010) aims to enhance the capacity of banking industry so that higher effic iency and productivity can be reaped in the future. This study seeks to determine the impact of merger on the efficiency and productivity ofcommercial banks in Malaysia for the period 1995 until 2005. The study uses a non-parametric approach, nam ely DEA (data envelopment analysis?) to estimate the efficiency scores and to construct the Malmquist productivity index. To enable this estimation, three bank inputs and outputs are used. Amongst the findings are those banks exhibit higher efficiency score after the merger and thefo reign banks are more efficient than the local banks. Productivity of the banks is calculated in both periods, before and after the merger: The results show that, it is the local banks that have improved the most after the merger. The main source of productivity is technical change or innovation. The findings support the existing policy of having larger domestic banks in term of size.
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spelling oai:ir.uitm.edu.my:130532016-06-20T05:16:43Z https://ir.uitm.edu.my/id/eprint/13053/ Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia / Mahadzir Ismail ... [et al.] smrj Ismail, Mahadzir Sulaiman, Saliza Abdul Rahim, Hasni Nordin, Nordiana Bank mergers Malaysia The Financial Master Plan (2001- 2010) aims to enhance the capacity of banking industry so that higher effic iency and productivity can be reaped in the future. This study seeks to determine the impact of merger on the efficiency and productivity ofcommercial banks in Malaysia for the period 1995 until 2005. The study uses a non-parametric approach, nam ely DEA (data envelopment analysis?) to estimate the efficiency scores and to construct the Malmquist productivity index. To enable this estimation, three bank inputs and outputs are used. Amongst the findings are those banks exhibit higher efficiency score after the merger and thefo reign banks are more efficient than the local banks. Productivity of the banks is calculated in both periods, before and after the merger: The results show that, it is the local banks that have improved the most after the merger. The main source of productivity is technical change or innovation. The findings support the existing policy of having larger domestic banks in term of size. Research Management Institute (RMI) 2008 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/13053/1/AJ_MAHADZIR%20ISMAIL%20SMRJ%2008%201.pdf Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia / Mahadzir Ismail ... [et al.]. (2008) Social and Management Research Journal (SMRJ) <https://ir.uitm.edu.my/view/publication/Social_and_Management_Research_Journal_=28SMRJ=29/>, 5 (1). pp. 77-90. ISSN 1675-7017 https://smrj.uitm.edu.my/
spellingShingle Bank mergers
Malaysia
Ismail, Mahadzir
Sulaiman, Saliza
Abdul Rahim, Hasni
Nordin, Nordiana
Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia / Mahadzir Ismail ... [et al.]
title Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia / Mahadzir Ismail ... [et al.]
title_full Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia / Mahadzir Ismail ... [et al.]
title_fullStr Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia / Mahadzir Ismail ... [et al.]
title_full_unstemmed Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia / Mahadzir Ismail ... [et al.]
title_short Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia / Mahadzir Ismail ... [et al.]
title_sort impact of merger on efficiency and productivity a case study of commercial banks in malaysia mahadzir ismail et al
topic Bank mergers
Malaysia
url https://ir.uitm.edu.my/id/eprint/13053/1/AJ_MAHADZIR%20ISMAIL%20SMRJ%2008%201.pdf
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AT abdulrahimhasni impactofmergeronefficiencyandproductivityacasestudyofcommercialbanksinmalaysiamahadzirismailetal
AT nordinnordiana impactofmergeronefficiencyandproductivityacasestudyofcommercialbanksinmalaysiamahadzirismailetal