The Eficiency Effects of Bank Mergers and Acquisitions in a Developing Economy: Evidence from Malaysia

摘要: This paper utilises the non-parametric frontier approach, Data Envelopment Analysis (DEA), to analyse technical and scale efficiency of domestic incorporated Malaysian commercial banks during merger year, pre-and post period. We found that have exhibit a commendable overall level 95.9% 1998-2003 hence suggesting minimal input waste 4.1%. Our results suggest programme was successful, particularly for small medium size banks, which benefited most from expansion via economies scale. On other hand our larger should shrink benefit advantages. Decision-makers ought be more cautious in promoting mergers as means enjoying gains.