Assessing the effect of mergers and acquisitions on banks price efficiency: evidence from banking sectors in Middle East & North Africa (MENA) region

This article provides an empirical assessment of the profit, revenue and cost efficiency of 39 acquirer banks post M&A from 2000 to 2012 in the MENA region. This study employs the Data Envelopment Analysis (DEA), following the intermediation approach, to measure the level of efficiencies (profit...

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Main Authors: Mohamad Sindi, Sameer, Amin Noordin, Bany Ariffin, Ab Razak, Nazrul Hisyam, Kamarudin, Fakarudin
Format: Article
Language:English
Published: Serials Publications 2017
Online Access:http://psasir.upm.edu.my/id/eprint/60934/
http://psasir.upm.edu.my/id/eprint/60934/1/Assessing%20the%20effect%20of%20mergers%20and%20acquisitions%20on%20banks%20price%20efficiency%20evidence%20from%20banking%20sectors%20in%20Middle%20East%20%26%20North%20Africa%20%28MENA%29%20region.pdf
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author Mohamad Sindi, Sameer
Amin Noordin, Bany Ariffin
Ab Razak, Nazrul Hisyam
Kamarudin, Fakarudin
author_facet Mohamad Sindi, Sameer
Amin Noordin, Bany Ariffin
Ab Razak, Nazrul Hisyam
Kamarudin, Fakarudin
author_sort Mohamad Sindi, Sameer
building UPM Institutional Repository
collection Online Access
description This article provides an empirical assessment of the profit, revenue and cost efficiency of 39 acquirer banks post M&A from 2000 to 2012 in the MENA region. This study employs the Data Envelopment Analysis (DEA), following the intermediation approach, to measure the level of efficiencies (profit, revenue and cost) of acquirer banks in MENA region. The findings indicated that there is a change in the level of profit, cost and revenue efficiency of acquirer banks post M&A compared to pre-M&A period. However, the changing in the level of efficiencies are not significant statistically. Thus, this study concludes that the M&A have no significant effect on profit, revenue and cost efficiency of acquirer banks in the MENA region. The findings from this study are expected to contribute significantly to the existing knowledge on the efficiency of banks post-M&A activities in the MENA region, bank's management, policymakers in the banking industries.
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spelling upm-609342019-03-22T01:29:35Z http://psasir.upm.edu.my/id/eprint/60934/ Assessing the effect of mergers and acquisitions on banks price efficiency: evidence from banking sectors in Middle East & North Africa (MENA) region Mohamad Sindi, Sameer Amin Noordin, Bany Ariffin Ab Razak, Nazrul Hisyam Kamarudin, Fakarudin This article provides an empirical assessment of the profit, revenue and cost efficiency of 39 acquirer banks post M&A from 2000 to 2012 in the MENA region. This study employs the Data Envelopment Analysis (DEA), following the intermediation approach, to measure the level of efficiencies (profit, revenue and cost) of acquirer banks in MENA region. The findings indicated that there is a change in the level of profit, cost and revenue efficiency of acquirer banks post M&A compared to pre-M&A period. However, the changing in the level of efficiencies are not significant statistically. Thus, this study concludes that the M&A have no significant effect on profit, revenue and cost efficiency of acquirer banks in the MENA region. The findings from this study are expected to contribute significantly to the existing knowledge on the efficiency of banks post-M&A activities in the MENA region, bank's management, policymakers in the banking industries. Serials Publications 2017 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/60934/1/Assessing%20the%20effect%20of%20mergers%20and%20acquisitions%20on%20banks%20price%20efficiency%20evidence%20from%20banking%20sectors%20in%20Middle%20East%20%26%20North%20Africa%20%28MENA%29%20region.pdf Mohamad Sindi, Sameer and Amin Noordin, Bany Ariffin and Ab Razak, Nazrul Hisyam and Kamarudin, Fakarudin (2017) Assessing the effect of mergers and acquisitions on banks price efficiency: evidence from banking sectors in Middle East & North Africa (MENA) region. International Journal of Economic Research, 14 (16). pp. 1-17. ISSN 0972-9380
spellingShingle Mohamad Sindi, Sameer
Amin Noordin, Bany Ariffin
Ab Razak, Nazrul Hisyam
Kamarudin, Fakarudin
Assessing the effect of mergers and acquisitions on banks price efficiency: evidence from banking sectors in Middle East & North Africa (MENA) region
title Assessing the effect of mergers and acquisitions on banks price efficiency: evidence from banking sectors in Middle East & North Africa (MENA) region
title_full Assessing the effect of mergers and acquisitions on banks price efficiency: evidence from banking sectors in Middle East & North Africa (MENA) region
title_fullStr Assessing the effect of mergers and acquisitions on banks price efficiency: evidence from banking sectors in Middle East & North Africa (MENA) region
title_full_unstemmed Assessing the effect of mergers and acquisitions on banks price efficiency: evidence from banking sectors in Middle East & North Africa (MENA) region
title_short Assessing the effect of mergers and acquisitions on banks price efficiency: evidence from banking sectors in Middle East & North Africa (MENA) region
title_sort assessing the effect of mergers and acquisitions on banks price efficiency: evidence from banking sectors in middle east & north africa (mena) region
url http://psasir.upm.edu.my/id/eprint/60934/
http://psasir.upm.edu.my/id/eprint/60934/1/Assessing%20the%20effect%20of%20mergers%20and%20acquisitions%20on%20banks%20price%20efficiency%20evidence%20from%20banking%20sectors%20in%20Middle%20East%20%26%20North%20Africa%20%28MENA%29%20region.pdf