Do mergers and acquisitions leads to a higher technical and scale efficiency? a counter evidence from Malaysia

The present paper examines the impact of mergers and acquisitions on the technical efficiency of the Malaysian banking sector. The analysis consists of two stages. Firstly, by using the Data Envelopment Analysis (DEA) approach, we calculate the technical, pure technical, and scale efficiency of indi...

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Main Authors: Sufian, Fadzlan, Habibullah, Muzafar Shah
Format: Article
Language:English
Published: Academic Journals 2009
Online Access:http://psasir.upm.edu.my/id/eprint/14123/1/article1380541396_Sufian%20and%20Habibulah.pdf
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author Sufian, Fadzlan
Habibullah, Muzafar Shah
author_facet Sufian, Fadzlan
Habibullah, Muzafar Shah
author_sort Sufian, Fadzlan
collection UPM
description The present paper examines the impact of mergers and acquisitions on the technical efficiency of the Malaysian banking sector. The analysis consists of two stages. Firstly, by using the Data Envelopment Analysis (DEA) approach, we calculate the technical, pure technical, and scale efficiency of individual banks during the period 1997-2003. Secondly, we examine changes in the efficiency of the Malaysian banking sector during the pre and post merger periods by using a series of parametric and non-parametric univariate tests. Although the merger programme was unpopular, perceived by the market as impractical, and controversial, the empirical findings from this study suggest that the merger programme among the Malaysian domestic commercial banks was driven by economic reasons.
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spelling upm.eprints-141232018-09-04T08:09:00Z http://psasir.upm.edu.my/id/eprint/14123/ Do mergers and acquisitions leads to a higher technical and scale efficiency? a counter evidence from Malaysia Sufian, Fadzlan Habibullah, Muzafar Shah The present paper examines the impact of mergers and acquisitions on the technical efficiency of the Malaysian banking sector. The analysis consists of two stages. Firstly, by using the Data Envelopment Analysis (DEA) approach, we calculate the technical, pure technical, and scale efficiency of individual banks during the period 1997-2003. Secondly, we examine changes in the efficiency of the Malaysian banking sector during the pre and post merger periods by using a series of parametric and non-parametric univariate tests. Although the merger programme was unpopular, perceived by the market as impractical, and controversial, the empirical findings from this study suggest that the merger programme among the Malaysian domestic commercial banks was driven by economic reasons. Academic Journals 2009 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/14123/1/article1380541396_Sufian%20and%20Habibulah.pdf Sufian, Fadzlan and Habibullah, Muzafar Shah (2009) Do mergers and acquisitions leads to a higher technical and scale efficiency? a counter evidence from Malaysia. African Journal of Business Management, 3 (8). art. no. A41144217221. pp. 340-349. ISSN 1993-8233 http://www.academicjournals.org/journal/AJBM/article-abstract/A41144217221 10.5897/AJBM09.044
spellingShingle Sufian, Fadzlan
Habibullah, Muzafar Shah
Do mergers and acquisitions leads to a higher technical and scale efficiency? a counter evidence from Malaysia
title Do mergers and acquisitions leads to a higher technical and scale efficiency? a counter evidence from Malaysia
title_full Do mergers and acquisitions leads to a higher technical and scale efficiency? a counter evidence from Malaysia
title_fullStr Do mergers and acquisitions leads to a higher technical and scale efficiency? a counter evidence from Malaysia
title_full_unstemmed Do mergers and acquisitions leads to a higher technical and scale efficiency? a counter evidence from Malaysia
title_short Do mergers and acquisitions leads to a higher technical and scale efficiency? a counter evidence from Malaysia
title_sort do mergers and acquisitions leads to a higher technical and scale efficiency a counter evidence from malaysia
url http://psasir.upm.edu.my/id/eprint/14123/1/article1380541396_Sufian%20and%20Habibulah.pdf
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AT habibullahmuzafarshah domergersandacquisitionsleadstoahighertechnicalandscaleefficiencyacounterevidencefrommalaysia