Effects of mergers and acquisitions on revenue efficiency and the potential determinants: evidence from Malaysian banks

This paper discusses on identifying the effects of regulators-guided mergers on production efficiency gains of Malaysian banks as measured by revenue efficiency ratio. The paper also examines the potential bank-specific and macroeconomics determinants correlated with revenue efficiency. The study sa...

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Bibliographic Details
Main Author: Kamarudin, Fakarudin
Format: Article
Language:English
Published: Universiti Putra Malaysia Press 2014
Online Access:http://psasir.upm.edu.my/id/eprint/38921/1/04%20JSSH%20Vol%2022%20%28S%29%20Dec%202014_pg55-76%20%28JSSH-1205-2014%29.pdf
http://psasir.upm.edu.my/id/eprint/38921/
http://www.pertanika.upm.edu.my/Pertanika%20PAPERS/JSSH%20Vol.%2022%20%28S%29%20Dec.%202014/04%20JSSH%20Vol%2022%20%28S%29%20Dec%202014_pg55-76%20%28JSSH-1205-2014%29.pdf
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Summary:This paper discusses on identifying the effects of regulators-guided mergers on production efficiency gains of Malaysian banks as measured by revenue efficiency ratio. The paper also examines the potential bank-specific and macroeconomics determinants correlated with revenue efficiency. The study sample consisted of banks that were engaged in mergers during 2002-2009 matched with those not engaged in mergers as the control sample. Results showed that revenue efficiency did not improve after the merger. Meanwhile, size, market power and management quality were shown to be correlated with revenue efficiency.