The impact of forced mergers and acquisitions on banks' total factor productivity: empirical evidence from Malaysia
In the present paper, we employ alternative techniques to examine the impact of mergers and acquisitions on the total factor productivity of Malaysian banks. These alternative techniques extend from the use of non-parametric ‘frontier’-oriented Malmquist productivity index (MPI) and central tendency...
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| Format: | Article |
| Language: | English |
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Routledge
2014
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| Online Access: | http://psasir.upm.edu.my/id/eprint/35712/ http://psasir.upm.edu.my/id/eprint/35712/1/The%20impact%20of%20forced%20mergers%20and%20acquisitions%20on%20banks%27%20total%20factor%20productivity%20empirical%20evidence%20from%20Malaysia.pdf |
| _version_ | 1848848131100246016 |
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| author | Sufian, Fadzlan Habibullah, Muzafar Shah |
| author_facet | Sufian, Fadzlan Habibullah, Muzafar Shah |
| author_sort | Sufian, Fadzlan |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | In the present paper, we employ alternative techniques to examine the impact of mergers and acquisitions on the total factor productivity of Malaysian banks. These alternative techniques extend from the use of non-parametric ‘frontier’-oriented Malmquist productivity index (MPI) and central tendency ordinary least square (OLS) and fixed effects (FE) panel regression methods. We find that Malaysian banks have exhibited a higher mean total factor productivity level during the post-merger period. The results from the multivariate regression analysis suggest that income diversification and operating expenses are positively and significantly related to Malaysian banks’ total factor productivity, while credit risk and inflation exhibit a negative relationship. The empirical findings indicate that the acquiring banks have been relatively more productive compared to the target banks and banks in the control group. |
| first_indexed | 2025-11-15T09:29:37Z |
| format | Article |
| id | upm-35712 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T09:29:37Z |
| publishDate | 2014 |
| publisher | Routledge |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-357122017-07-11T01:20:47Z http://psasir.upm.edu.my/id/eprint/35712/ The impact of forced mergers and acquisitions on banks' total factor productivity: empirical evidence from Malaysia Sufian, Fadzlan Habibullah, Muzafar Shah In the present paper, we employ alternative techniques to examine the impact of mergers and acquisitions on the total factor productivity of Malaysian banks. These alternative techniques extend from the use of non-parametric ‘frontier’-oriented Malmquist productivity index (MPI) and central tendency ordinary least square (OLS) and fixed effects (FE) panel regression methods. We find that Malaysian banks have exhibited a higher mean total factor productivity level during the post-merger period. The results from the multivariate regression analysis suggest that income diversification and operating expenses are positively and significantly related to Malaysian banks’ total factor productivity, while credit risk and inflation exhibit a negative relationship. The empirical findings indicate that the acquiring banks have been relatively more productive compared to the target banks and banks in the control group. Routledge 2014 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/35712/1/The%20impact%20of%20forced%20mergers%20and%20acquisitions%20on%20banks%27%20total%20factor%20productivity%20empirical%20evidence%20from%20Malaysia.pdf Sufian, Fadzlan and Habibullah, Muzafar Shah (2014) The impact of forced mergers and acquisitions on banks' total factor productivity: empirical evidence from Malaysia. Journal of the Asia Pacific Economy, 19 (1). pp. 151-185. ISSN 1354-7860; ESSN: 1469-9648 http://www.tandfonline.com/doi/abs/10.1080/13547860.2013.818428 10.1080/13547860.2013.818428 |
| spellingShingle | Sufian, Fadzlan Habibullah, Muzafar Shah The impact of forced mergers and acquisitions on banks' total factor productivity: empirical evidence from Malaysia |
| title | The impact of forced mergers and acquisitions on banks' total factor productivity: empirical evidence from Malaysia |
| title_full | The impact of forced mergers and acquisitions on banks' total factor productivity: empirical evidence from Malaysia |
| title_fullStr | The impact of forced mergers and acquisitions on banks' total factor productivity: empirical evidence from Malaysia |
| title_full_unstemmed | The impact of forced mergers and acquisitions on banks' total factor productivity: empirical evidence from Malaysia |
| title_short | The impact of forced mergers and acquisitions on banks' total factor productivity: empirical evidence from Malaysia |
| title_sort | impact of forced mergers and acquisitions on banks' total factor productivity: empirical evidence from malaysia |
| url | http://psasir.upm.edu.my/id/eprint/35712/ http://psasir.upm.edu.my/id/eprint/35712/ http://psasir.upm.edu.my/id/eprint/35712/ http://psasir.upm.edu.my/id/eprint/35712/1/The%20impact%20of%20forced%20mergers%20and%20acquisitions%20on%20banks%27%20total%20factor%20productivity%20empirical%20evidence%20from%20Malaysia.pdf |