IDEAS home Printed from https://ideas.repec.org/a/ebj/ijpssr/2025v4iiva4.html

Assessing Pakistani Bank's Efficiency, A Data Envelopment Analysis Study on Post-M&As

Author

Listed:
  • Rao Sabir Nawaz (勇敢)

Abstract

Large-scale M&A involved in the banking sector as the primary target have been initiated by nations globally throughout the last decade of the 20th century. A merger is a corporate restructuring tactic that has a wide range of effects on the business's performance. This study analyzed the impact of M&A on the banking industry in Pakistan from 2007 to 2017, covering four years before and after (-4, +4 years) each M&As and calculated the average efficiency score for before and after merger periods. To examine the impact of merger and acquisition on bank efficiency, this study employs DEA method in R software under both CRS and VRS. Three different input and output frameworks are applied to estimate each bank technical efficiency, pure technical efficiency and scale efficiency. The results reveal a mixed impact of M&As on banks efficiency. The result reveals that few banks showed improve efficiency after M&A technique, while many banks face increased inefficiency after M&As. However, In conclusion the research findings depict that Pakistani Banks has not got any beneficial change after mergers and acquisitions (M&As).

Suggested Citation

  • Rao Sabir Nawaz (勇敢), 2025. "Assessing Pakistani Bank's Efficiency, A Data Envelopment Analysis Study on Post-M&As," International Journal of Politics & Social Sciences Review (IJPSSR), International Journal of Politics & Social Sciences Review (IJPSSR), vol. 4(IV), pages 32-39.
    • Handle: RePEc:ebj:ijpssr:2025v4iiva4
    as

    Download full text from publisher

    File URL: https://ojs.ijpssr.org.pk/index.php/ijpssr/article/download/199/143/1575
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bertrand, Olivier & Betschinger, Marie-Ann, 2012. "Performance of domestic and cross-border acquisitions: Empirical evidence from Russian acquirers," Journal of Comparative Economics, Elsevier, vol. 40(3), pages 413-437.
    2. Behr, Andreas & Heid, Frank, 2011. "The success of bank mergers revisited. An assessment based on a matching strategy," Journal of Empirical Finance, Elsevier, vol. 18(1), pages 117-135, January.
    3. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    4. Zhu, Qingyuan & Wu, Jie & Ji, Xiang & Li, Feng, 2018. "A simple MILP to determine closest targets in non-oriented DEA model satisfying strong monotonicity," Omega, Elsevier, vol. 79(C), pages 1-8.
    5. Jie Wu & Qingxian An & Liang Liang, 2011. "Mergers and acquisitions based on DEA approach," International Journal of Applied Management Science, Inderscience Enterprises Ltd, vol. 3(3), pages 227-240.
    6. Yongjun Li & Feng Li & Ali Emrouznejad & Liang Liang & Qiwei Xie, 2019. "Allocating the fixed cost: an approach based on data envelopment analysis and cooperative game," Annals of Operations Research, Springer, vol. 274(1), pages 373-394, March.
    7. Hankir, Yassin & Rauch, Christian & Umber, Marc P., 2011. "Bank M&A: A market power story?," Journal of Banking & Finance, Elsevier, vol. 35(9), pages 2341-2354, September.
    8. Zhu, Qingyuan & Aparicio, Juan & Li, Feng & Wu, Jie & Kou, Gang, 2022. "Determining closest targets on the extended facet production possibility set in data envelopment analysis: Modeling and computational aspects," European Journal of Operational Research, Elsevier, vol. 296(3), pages 927-939.
    9. Charnes, A. & Cooper, W. W. & Rhodes, E., 1979. "Measuring the efficiency of decision-making units," European Journal of Operational Research, Elsevier, vol. 3(4), pages 339-338, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kao, Chiang, 2022. "A maximum slacks-based measure of efficiency for closed series production systems," Omega, Elsevier, vol. 106(C).
    2. Kao, Chiang, 2022. "Closest targets in the slacks-based measure of efficiency for production units with multi-period data," European Journal of Operational Research, Elsevier, vol. 297(3), pages 1042-1054.
    3. Monge, Juan F. & Ruiz, José L., 2023. "Setting closer targets based on non-dominated convex combinations of Pareto-efficient units: A bi-level linear programming approach in Data Envelopment Analysis," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1084-1096.
    4. Ferreira, D.C. & Marques, R.C., 2019. "Do quality and access to hospital services impact on their technical efficiency?," Omega, Elsevier, vol. 86(C), pages 218-236.
    5. M. Lábaj & M. Luptáčik & E. Nežinský, 2014. "Data envelopment analysis for measuring economic growth in terms of welfare beyond GDP," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 407-424, August.
    6. Chu, Junfei & Dong, Yanhua & Wang, Weijiao & Rui, Yuting & Yuan, Zhe, 2025. "Data envelopment analysis fixed cost allocation based on dynamic bargaining game and the Nash equilibrium," European Journal of Operational Research, Elsevier, vol. 325(2), pages 317-328.
    7. Zhang, Weike & Meng, Jia & Tian, Xiaoli, 2020. "Does de-capacity policy enhance the total factor productivity of China's coal companies? A Regression Discontinuity design," Resources Policy, Elsevier, vol. 68(C).
    8. Kao, Chiang, 2020. "Measuring efficiency in a general production possibility set allowing for negative data," European Journal of Operational Research, Elsevier, vol. 282(3), pages 980-988.
    9. Tao, Xiangyang & Peng, Qiaoyu, 2025. "Moral hazard in data envelopment analysis benchmarking," European Journal of Operational Research, Elsevier, vol. 327(1), pages 203-217.
    10. Civera, Alice & Lehmann, Erik E. & Paleari, Stefano & Stockinger, Sarah A.E., 2020. "Higher education policy: Why hope for quality when rewarding quantity?," Research Policy, Elsevier, vol. 49(8).
    11. Carla Henriques & Clara Viseu, 2022. "Are ERDFs Devoted to Boosting ICTs in SMEs Inefficient? A Three-Stage SBM Approach," Sustainability, MDPI, vol. 14(17), pages 1-20, August.
    12. Aziz KUTLAR & Ali KABASAKAL & Adem BABACAN, 2015. "Dynamic Efficiency of Turkish Banks: a DEA Window and Malmquist Index Analysis for the Period of 2003-2012," Sosyoekonomi Journal, Sosyoekonomi Society, issue 23(24).
    13. Burki, Abid A. & Terrell, Dek, 1998. "Measuring production efficiency of small firms in Pakistan," World Development, Elsevier, vol. 26(1), pages 155-169, January.
    14. Thompson, Russell G. & Brinkmann, Emile J. & Dharmapala, P. S. & Gonzalez-Lima, M. D. & Thrall, Robert M., 1997. "DEA/AR profit ratios and sensitivity of 100 large U.S. banks," European Journal of Operational Research, Elsevier, vol. 98(2), pages 213-229, April.
    15. Yuan-ho Lee & Lung-Tan Lu & An-De Sung, 2012. "A Measure to the Operational Performance of International Hotels in Taiwan: DEA and Malmquist Approach," Review of Economics & Finance, Better Advances Press, Canada, vol. 2, pages 73-83, February.
    16. Meng Ye & Yanan Jin & Fumin Deng, 2022. "Municipal waste treatment efficiency in 29 OECD countries using three-stage Bootstrap-DEA model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(9), pages 11369-11391, September.
    17. Subhash C. Ray, 2014. "Data Envelopment Analysis: An Overview," Working papers 2014-33, University of Connecticut, Department of Economics.
    18. A. M. Theodoridis & A. Psychoudakis, 2008. "Efficiency Measurement in Greek Dairy Farms: Stochastic Frontier vs. Data Envelopment Analysis," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 1(2), pages 53-67, December.
    19. Boutheina Bannour & Asma Sghaier & Mohammad Nurunnabi, 2020. "How to Choose a Nonparametric Frontier Model? Technical Efficiency of Turkish Banks Assessing Global," Global Business Review, International Management Institute, vol. 21(2), pages 348-364, April.
    20. Kao, Chiang & Hung, Hsi-Tai, 2008. "Efficiency analysis of university departments: An empirical study," Omega, Elsevier, vol. 36(4), pages 653-664, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebj:ijpssr:2025v4iiva4. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hazrat Bilal (email available below). General contact details of provider: http://www.ijpssr.org.pk .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.