The cost efficiency effects of involuntary bank mergers : empirical evidence from Malaysia

Much of the merger and banking efficiency studies is centered on the market driven or voluntary merger. Thus, the uniqueness of Malaysian merger policy offers an interesting platform for this study to embark on. The merger in Malaysia is unique as all the domestic banks were enforced to merge by t...

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Main Authors:	Rossazana, Ab. Rahim, Nor Ghani, Md-Nor, Shamsubaridah, Ramlee
Format:	Article
Language:	English
Published:	Faculty of Economics, Thammasat University 2012
Subjects:	HB Economic Theory HG Finance
Online Access:	http://ir.unimas.my/1272/ http://ir.unimas.my/1272/ http://ir.unimas.my/1272/1/the%20cost%20efficiency%20effects%20of%20involuntary.pdf

id	unimas-1272
recordtype	eprints
spelling	unimas-12722017-10-31T03:46:18Z http://ir.unimas.my/1272/ The cost efficiency effects of involuntary bank mergers : empirical evidence from Malaysia Rossazana, Ab. Rahim Nor Ghani, Md-Nor Shamsubaridah, Ramlee HB Economic Theory HG Finance Much of the merger and banking efficiency studies is centered on the market driven or voluntary merger. Thus, the uniqueness of Malaysian merger policy offers an interesting platform for this study to embark on. The merger in Malaysia is unique as all the domestic banks were enforced to merge by the government in year 1999 after years of persuasion with little success. This study attempts to quantify the impact of the involuntary merger on the cost efficiency gains over the 1990-2005 periods. Firstly, several tests have been performed to investigate whether it is best to envelope data with a common frontier of data envelopment analysis (DEA) or by separate frontiers. Secondly, this paper assesses the cost,allocative, technical, pure technical and scale efficiencies of Malaysian banking industry as the results of the merger. In general, the results suggest that the enforcement of the bank merger policy has resulted in an improvement of bank efficiency levels. Faculty of Economics, Thammasat University 2012 Article NonPeerReviewed text en http://ir.unimas.my/1272/1/the%20cost%20efficiency%20effects%20of%20involuntary.pdf Rossazana, Ab. Rahim and Nor Ghani, Md-Nor and Shamsubaridah, Ramlee (2012) The cost efficiency effects of involuntary bank mergers : empirical evidence from Malaysia. Thammasat Economic Journal, 30 (1). ISSN 1685-3008 http://www.tej.econ.tu.ac.th/TUEconJournal/index.php?lang=EN
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Malaysia Sarawak
building	UNIMAS Institutional Repository
collection	Online Access
language	English
topic	HB Economic Theory HG Finance
spellingShingle	HB Economic Theory HG Finance Rossazana, Ab. Rahim Nor Ghani, Md-Nor Shamsubaridah, Ramlee The cost efficiency effects of involuntary bank mergers : empirical evidence from Malaysia
description	Much of the merger and banking efficiency studies is centered on the market driven or voluntary merger. Thus, the uniqueness of Malaysian merger policy offers an interesting platform for this study to embark on. The merger in Malaysia is unique as all the domestic banks were enforced to merge by the government in year 1999 after years of persuasion with little success. This study attempts to quantify the impact of the involuntary merger on the cost efficiency gains over the 1990-2005 periods. Firstly, several tests have been performed to investigate whether it is best to envelope data with a common frontier of data envelopment analysis (DEA) or by separate frontiers. Secondly, this paper assesses the cost,allocative, technical, pure technical and scale efficiencies of Malaysian banking industry as the results of the merger. In general, the results suggest that the enforcement of the bank merger policy has resulted in an improvement of bank efficiency levels.
format	Article
author	Rossazana, Ab. Rahim Nor Ghani, Md-Nor Shamsubaridah, Ramlee
author_facet	Rossazana, Ab. Rahim Nor Ghani, Md-Nor Shamsubaridah, Ramlee
author_sort	Rossazana, Ab. Rahim
title	The cost efficiency effects of involuntary bank mergers : empirical evidence from Malaysia
title_short	The cost efficiency effects of involuntary bank mergers : empirical evidence from Malaysia
title_full	The cost efficiency effects of involuntary bank mergers : empirical evidence from Malaysia
title_fullStr	The cost efficiency effects of involuntary bank mergers : empirical evidence from Malaysia
title_full_unstemmed	The cost efficiency effects of involuntary bank mergers : empirical evidence from Malaysia
title_sort	cost efficiency effects of involuntary bank mergers : empirical evidence from malaysia
publisher	Faculty of Economics, Thammasat University
publishDate	2012
url	http://ir.unimas.my/1272/ http://ir.unimas.my/1272/ http://ir.unimas.my/1272/1/the%20cost%20efficiency%20effects%20of%20involuntary.pdf
first_indexed	2018-09-06T14:42:27Z
last_indexed	2018-09-06T14:42:27Z
_version_	1610869582360215552

The cost efficiency effects of involuntary bank mergers : empirical evidence from Malaysia

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