Sufian, Fadzlan and Abdul Majid, Muhamed Zulkhibri and Haron, Razali (2007): Efficiency and Bank Merger in Singapore: A Joint Estimation of Non-Parametric, Parametric and Financial Ratios Analysis.
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This paper provides event study window analysis of pre- and post-merger bank performance in Singapore by employing Financial Ratio Analysis and Data Envelopment Analysis (DEA) approach. The findings from financial ratio analysis suggests that the merger has not resulted in a higher profitability of Singaporean banking groups post-merger, which could be attributed to the higher costs incurred. However, the merger has resulted in higher Singaporean banking groups’ mean overall efficiency. In most cases, the acquiring banks mean overall efficiency improved (deteriorates) post-merger resulting from merger with a more (less) efficient bank. Further, Tobit regression analysis is employed to explain changes in the efficiencies with the finding shows that, more efficient banks tend to maintain higher degree of capitalization, post higher profits and incur higher overhead costs.
|Item Type:||MPRA Paper|
|Original Title:||Efficiency and Bank Merger in Singapore: A Joint Estimation of Non-Parametric, Parametric and Financial Ratios Analysis|
|Keywords:||Bank Mergers, Data Envelopment Analysis (DEA), Tobit Model, Financial Ratios, Singapore|
|Subjects:||G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers; Acquisitions; Restructuring; Corporate Governance
D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||Dr Muhamed Zulkhibri Abdul Majid|
|Date Deposited:||12. Dec 2008 19:41|
|Last Modified:||11. Feb 2013 18:39|
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