Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia / Mahadzir Ismail ... [et al.]

Ismail, Mahadzir and Sulaiman, Saliza and Abdul Rahim, Hasni and Nordin, Nordiana (2008) Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia / Mahadzir Ismail ... [et al.]. Social and Management Research Journal (SMRJ), 5 (1). pp. 77-90. ISSN 1675-7017

Abstract

The Financial Master Plan (2001- 2010) aims to enhance the capacity of banking industry so that higher effic iency and productivity can be reaped in the future. This study seeks to determine the impact of merger on the efficiency
and productivity ofcommercial banks in Malaysia for the period 1995 until 2005. The study uses a non-parametric approach, nam ely DEA (data envelopment analysis?) to estimate the efficiency scores and to construct the
Malmquist productivity index. To enable this estimation, three bank inputs and outputs are used. Amongst the findings are those banks exhibit higher efficiency score after the merger and thefo reign banks are more efficient than the local banks. Productivity of the banks is calculated in both periods, before and after the merger: The results show that, it is the local banks that have improved the most after the merger. The main source of productivity is technical change or innovation. The findings support the existing policy of having larger domestic banks in term of size.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Ismail, Mahadzir
mahadzir@kedah.uitm.edu.my
Sulaiman, Saliza
UNSPECIFIED
Abdul Rahim, Hasni
UNSPECIFIED
Nordin, Nordiana
nordiana@salam.uitm.edu.my
Subjects: H Social Sciences > HG Finance > Banking > Bank mergers
H Social Sciences > HG Finance > Banking > Malaysia
Divisions: Universiti Teknologi MARA, Shah Alam > Research Management Centre (RMC)
Journal or Publication Title: Social and Management Research Journal (SMRJ)
UiTM Journal Collections: UiTM Journal > Social and Management Research Journal (SMRJ)
ISSN: 1675-7017
Volume: 5
Number: 1
Page Range: pp. 77-90
Keywords: Efficiency, productivity, DEA, commercial banks
Date: 2008
URI: https://ir.uitm.edu.my/id/eprint/13053
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13053

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