EFFECT OF MERGERS ON TECHNICAL AND SCALE EFICIENY OF BANKS: TWO CASES OF PAKISTAN BANK MERGERS

Authors

  • Muhammad Khyzer Bin Dost Lecturer, Hailey Collage of Commerce, University of the Punjab Lahore
  • Muhammad Wasim Akram Research Scholar, Hailey Collage of Commerce, University of the Punjab Lahore
  • Khudaija Warraich Research Scholar, Hailey Collage of Commerce, University of the Punjab Lahore

Keywords:

Efficiency Effects, Mergers, DEA, Pakistan Banks

Abstract

This paper investigated the effect of mergers on the technical, pure technical and scale efficiency of banks. Hardly any literature was available on accessing the efficiency effects of mergers by using non-parametric approach. So this paper used Data envelopment analysis and studied two cases of mergers in Pakistani banking sector in last 10 years. Both CRS and VRS specifications were used under input-orientation. The results showed both overall technical efficiency and scale efficient reduced, however pure technical efficiency ascended after merger.

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Published

05-12-2011

How to Cite

Bin Dost , M. K., Akram, M. W., & Warraich , K. (2011). EFFECT OF MERGERS ON TECHNICAL AND SCALE EFICIENY OF BANKS: TWO CASES OF PAKISTAN BANK MERGERS. Arabian Journal of Business and Management Review (Kuwait Chapter), 1(4), 102–118. Retrieved from https://j.arabianjbmr.com/index.php/kcajbmr/article/view/238