Abstract
This study empirically investigates the effect of bank mergers and acquisitions (M&As) on technical efficiency in Vietnamese commercial banks. A bootstrapped Data Envelopment Analysis is employed to arrive at technical efficiency score of 136 virtual bank mergers in the Vietnamese banking industry over the period from 2007 to 2011. The findings reveal that a year before the impact of the global financial crisis (GFC), the majority of the virtual bank M&As under examination were unable to generate technical efficiency gains. However, these virtual banks mergers can lead to technical efficiency gains in a year after the GFC and in 2011. The findings also indicate that virtual mergers formed by state-owned commercial banks with other commercial banks are less efficient than the mergers created by only joint stock commercial banks. Finally, the empirical result supports the hypothesis that a merger between two efficient banks does not necessarily generate an efficient bank merger.
Published Version
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