Effects of bank mergers on concentration and efficiency of the venezuelan banking system, 1998-2005
AbstractThis paper analyzes the relation between bank mergers and changes in the concentration and efficiency of the Venezuelan Banking System during the period 1998-2005. Efficiency was estimated through a stochastic cost frontier model. The concentration was measured by deposits and considering the four-firm concentration ratio. The research found evidences that support the idea that mergers are associated with concentration increases. However, the stochastic costs frontier model suggested that banking mergers did not produce efficiency increases; on the contrary, the merged banks were less efficient than non-merged banks.
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Bibliographic InfoArticle provided by Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela in its journal Economía.
Volume (Year): 35 (2010)
Issue (Month): 30 (July-December)
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Postal: Facultad de Ciencias Económicas y Sociales. Instituto de Investigaciones Económicas y Sociales. Campus Universitario Liria, Edificio G, Tercer Nivel. Mérida 5101, Estado Mérida, Venezuela
Phone: +58 74 401111 ext. 1081
Fax: +58 74 401120
Web page: http://iies.faces.ula.ve/
More information through EDIRC
Bank mergers; concentration; efficiency; stochastic cost frontier.;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
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