Efficiency in pre-merger and post-merger non-bank financial institutions
AbstractA two-part process is employed to analyse the role of efficiency in merger and acquisition (M&A) activity in Australian credit unions during the period 1993-1997. The measures of efficiency are derived using the non-parametric technique of data envelopment analysis. The first part uses panel data in the probit model to relate pure technical efficiency, along with other managerial, regulatory and financial factors, to the probability of merger activity, either as an acquiring or acquired entity. The results indicate that loan portfolio diversification, management ability, earnings and asset size are a significant influence on the probability of acquisition, though the primary determinant of being acquired is smaller asset size. The second part uses a tobit model adapted to a panel framework to analyse post-merger efficiency. Mergers appear to have improved both pure technical efficiency and scale efficiency in the credit union industry. Copyright © 2001 John Wiley & Sons, Ltd.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.
Volume (Year): 22 (2001)
Issue (Month): 8 ()
Contact details of provider:
Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fried, Harold O. & Lovell, C. A. Knox & Yaisawarng, Suthathip, 1999. "The impact of mergers on credit union service provision," Journal of Banking & Finance, Elsevier, vol. 23(2-4), pages 367-386, February.
- Shaffer, Sherrill, 1993. "Can megamergers improve bank efficiency?," Journal of Banking & Finance, Elsevier, vol. 17(2-3), pages 423-436, April.
- Miller, Stephen M. & Noulas, Athanasios G., 1996. "The technical efficiency of large bank production," Journal of Banking & Finance, Elsevier, vol. 20(3), pages 495-509, April.
- Ferrier, Gary D. & Lovell, C. A. Knox, 1990. "Measuring cost efficiency in banking : Econometric and linear programming evidence," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 229-245.
- Fried, Harold O. & Knox Lovell, C. A. & Eeckaut, Philippe Vanden, 1993. "Evaluating the performance of US credit unions," Journal of Banking & Finance, Elsevier, vol. 17(2-3), pages 251-265, April.
- Aly, Hassan Y, et al, 1990. "Technical, Scale, and Allocative Efficiencies in U.S. Banking: An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 211-18, May.
- Berg, Sigbjorn Atle & Forsund, Finn R. & Hjalmarsson, Lennart & Suominen, Matti, 1993. "Banking efficiency in the Nordic countries," Journal of Banking & Finance, Elsevier, vol. 17(2-3), pages 371-388, April.
- Went, Peter, 2003. "A quantitative analysis of qualitative arguments in a bank merger," International Review of Financial Analysis, Elsevier, vol. 12(4), pages 379-403.
- Andrew C. Worthington, 2009.
"Frontier Efficiency Measurement in Deposit-taking Financial Mutuals: A Review of Techniques, Application, and Future Research Directions,"
Discussion Papers in Finance
finance:200911, Griffith University, Department of Accounting, Finance and Economics.
- Andrew C. Worthington, 2010. "Frontier Efficiency Measurement In Deposit-Taking Financial Mutuals: A Review Of Techniques, Applications, And Future Research Directions," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 81(1), pages 39-75, 03.
- Bauer, Keldon J. & Miles, Linda L. & Nishikawa, Takeshi, 2009. "The effect of mergers on credit union performance," Journal of Banking & Finance, Elsevier, vol. 33(12), pages 2267-2274, December.
- Mario Fortin & André Leclerc, 2011.
"L’Efficience Des Cooperatives De Services Financiers: Une Analyse De La Contribution Du Milieu,"
Annals of Public and Cooperative Economics,
Wiley Blackwell, vol. 82(1), pages 45-62, March.
- Mario Fortin & Andre Leclerc, 2010. "L’Efficience Des Cooperatives De Services Financiers : Une Analyse De La Contribution Du Milieu," Cahiers de recherche 10-14, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- Mario Fortin & André Leclerc, 2010. "L’efficience des cooperatives de services financiers : Une analyse de la contribution du milieu," Cahiers de recherche 10-23, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- Caiazza, Stefano & Pozzolo, Alberto Franco & Trovato, Giovanni, 2011.
"Do domestic and cross-border M&As differ? Cross-country evidence from the banking sector,"
Economics & Statistics Discussion Papers
esdp11061, University of Molise, Dept. SEGeS.
- Stafano Caiazza & Alberto Franco Pozzolo & Giovanni Trovato, 2011. "Do domestic and cross-border M&As differ? Cross-country evidence from the banking sector," Mo.Fi.R. Working Papers 52, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
- Lewis, Danielle & Webb, James R., 2007. "Potential cost synergies from banks acquiring real estate brokerage services," Journal of Banking & Finance, Elsevier, vol. 31(8), pages 2347-2363, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.