Prevaluating efficiency gains from potential mergers and acquisitions in the financial industry with the Resample Past–Present–Future data envelopment analysis approach

Abstract

Due to the trend of global economic globalization and financial technology innovation, Taiwan's financial industry is facing greater challenges and competition. This research uses the Resample Slacks‐Based Measure and Merger Potential Gains model, which is different from postmerger efficiency evaluation, and uses the concept of premerger evaluations to analyze the technical efficiencies of 14 financial holding banks in Taiwan from 2015 to 2019. The results show that there are positive and postmerger efficiency gains, and there is no guarantee that there will be efficiency gains for financial holding company after the merger.