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

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  • 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
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    References listed on IDEAS

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