Forced mergers on bank efficiency and productivity: evidence from semi-parametric Malmquist productivity index
The paper examines the impact of mergers and acquisitions on the productivity of the Malaysian banking sector. The analysis consists of two stages. Firstly, the semi-parametric Malmquist productivity index (MPI) method is applied to a [-5, +8] window to examine the efficiency and productivity of the...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
SAGE Publications
2017
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/56406/1/Forced%20mergers%20on%20bank%20efficiency%20and%20productivity%20evidence%20from%20semi-parametric%20Malmquist%20productivity%20index.pdf |
| _version_ | 1825931409574854656 |
|---|---|
| author | Sufian, Fadzlan Kamarudin, Fakarudin |
| author_facet | Sufian, Fadzlan Kamarudin, Fakarudin |
| author_sort | Sufian, Fadzlan |
| collection | UPM |
| description | The paper examines the impact of mergers and acquisitions on the productivity of the Malaysian banking sector. The analysis consists of two stages. Firstly, the semi-parametric Malmquist productivity index (MPI) method is applied to a [-5, +8] window to examine the efficiency and productivity of the acquiring and target banks during the pre- and post-merger periods. Secondly, as suggested by Banker and Natarajan (2008), we employ a battery of parametric and non-parametric univariate tests to examine the difference in the efficiency and productivity of the Malaysian banking sector during the pre- and post-merger periods. We find that the Malaysian banking sector has exhibited a higher total factor productivity level during the post-merger period attributed to technological progress. The empirical findings do not provide conclusive evidence on the less productive banks becoming the target for acquisitions. |
| first_indexed | 2024-03-06T09:26:18Z |
| format | Article |
| id | upm.eprints-56406 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T09:26:18Z |
| publishDate | 2017 |
| publisher | SAGE Publications |
| record_format | dspace |
| spelling | upm.eprints-564062017-07-31T09:17:27Z http://psasir.upm.edu.my/id/eprint/56406/ Forced mergers on bank efficiency and productivity: evidence from semi-parametric Malmquist productivity index Sufian, Fadzlan Kamarudin, Fakarudin The paper examines the impact of mergers and acquisitions on the productivity of the Malaysian banking sector. The analysis consists of two stages. Firstly, the semi-parametric Malmquist productivity index (MPI) method is applied to a [-5, +8] window to examine the efficiency and productivity of the acquiring and target banks during the pre- and post-merger periods. Secondly, as suggested by Banker and Natarajan (2008), we employ a battery of parametric and non-parametric univariate tests to examine the difference in the efficiency and productivity of the Malaysian banking sector during the pre- and post-merger periods. We find that the Malaysian banking sector has exhibited a higher total factor productivity level during the post-merger period attributed to technological progress. The empirical findings do not provide conclusive evidence on the less productive banks becoming the target for acquisitions. SAGE Publications 2017 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/56406/1/Forced%20mergers%20on%20bank%20efficiency%20and%20productivity%20evidence%20from%20semi-parametric%20Malmquist%20productivity%20index.pdf Sufian, Fadzlan and Kamarudin, Fakarudin (2017) Forced mergers on bank efficiency and productivity: evidence from semi-parametric Malmquist productivity index. Global Business Review, 18 (1). pp. 19-44. ISSN 0972-1509; ESSN: 0973-0664 http://journals.sagepub.com/doi/abs/10.1177/0972150916666850 10.1177/0972150916666850 |
| spellingShingle | Sufian, Fadzlan Kamarudin, Fakarudin Forced mergers on bank efficiency and productivity: evidence from semi-parametric Malmquist productivity index |
| title | Forced mergers on bank efficiency and productivity: evidence from semi-parametric Malmquist productivity index |
| title_full | Forced mergers on bank efficiency and productivity: evidence from semi-parametric Malmquist productivity index |
| title_fullStr | Forced mergers on bank efficiency and productivity: evidence from semi-parametric Malmquist productivity index |
| title_full_unstemmed | Forced mergers on bank efficiency and productivity: evidence from semi-parametric Malmquist productivity index |
| title_short | Forced mergers on bank efficiency and productivity: evidence from semi-parametric Malmquist productivity index |
| title_sort | forced mergers on bank efficiency and productivity evidence from semi parametric malmquist productivity index |
| url | http://psasir.upm.edu.my/id/eprint/56406/1/Forced%20mergers%20on%20bank%20efficiency%20and%20productivity%20evidence%20from%20semi-parametric%20Malmquist%20productivity%20index.pdf |
| work_keys_str_mv | AT sufianfadzlan forcedmergersonbankefficiencyandproductivityevidencefromsemiparametricmalmquistproductivityindex AT kamarudinfakarudin forcedmergersonbankefficiencyandproductivityevidencefromsemiparametricmalmquistproductivityindex |