Advanced Search
MyIDEAS: Login

Consolidation and banks' efficiency in a highly regulated banking market : an event study window analysis approach

Contents:

Author Info

  • Fadzlan Sulfian

    (Planning and Research Department and Department of Banking of Finance, University of Malaya)

Abstract

The study investigates the effects of mergers and acquisitions on Singapore's domestic banking groups' efficiency. A three-year window is chosen to examine the relative overall, pure technical and scale efficiency scores, ex ante and ex post. The non-parametric frontier approach known as Delta Envelopment Analysis (DEA) is employed to measure any efficiency gains (losses) resulting from the mergers and acquisitions among the domestically incorporated banking groups. To guide the definition of inputs and outputs into two alternative models, we used a variant of the intermediation approach. The results from both models suggest that the merger has resulted in higher mean overall efficiency of Singapore banking groups post-merger relative to pre-merger. Although the mergers have resulted in a more efficient Singaporean banking system, we find size to be the biggest factor influencing the inefficiency of Singapore's banking system. Hence, from the scale efficiency perspective, both our models do not support further consolidation in Singapore's banking sector. We do not find evidence of more efficient acquirers compared to the targets, as our findings from both models suggest that the targets are more efficient relative to the acquirers. Our results further support the hypothesis that the acquiring banks' mean overall efficiency improves as a result from a merger with a more efficient bank.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Article provided by University of the Philippines School of Economics and Philippine Economic Society in its journal Philippine Review of Economics.

Volume (Year): 42 (2005)
Issue (Month): 2 (December)
Pages: 55-73

as in new window
Handle: RePEc:phs:prejrn:v:42:y:2005:i:2:p:55-73

Contact details of provider:
Postal: Diliman, Quezon City 1101
Phone: 927-9686
Web page: http://www.econ.upd.edu.ph/
More information through EDIRC

Related research

Keywords: bank merger; data envelopment analysis; Singapore;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:phs:prejrn:v:42:y:2005:i:2:p:55-73

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reuben T. Campos).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.