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

Chiu, Yung‐ho; Lin, Tai Yu; Chang, Tzu‐Han; Lin, Y.-N.; Chiu, Shih Yung

doi:10.1002/mde.3241

Cited by 9 publications

(6 citation statements)

References 60 publications

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“…The research shows that DEA resampling is an effective model for predicting and measuring the performance of multiple decision-makers. Chiu et al [41] introduced the combination of the merger potential gains model and the resample pastpresent-future model to evaluate the performance of the financial industry in Taiwan. Wang et al [42] applied the newly developed DEA resampling model to evaluate the profitability of Vietnamese commercial banks.…”

Section: Literature Reviewmentioning

confidence: 99%

Effective Decision Making: Data Envelopment Analysis for Efficiency Evaluation in the Cloud Computing Marketplaces

Wang

Nguyen

et al. 2021

Axioms

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Assessing business performance is a critical issue for practicing managers, and business performance has always been of interest to managers and researchers. In recent years, the world has experienced a rapid growth in the cloud computing service sector thanks to its benefits to business organizations and economic development. Therefore, the performance efficiency of this sector has been concerned as one of the keys in today’s economic environment. This study aimed to assess the performance efficiency of cloud computing service providers in the United States of America, one of the biggest global markets in terms of cloud computing, by applying the data envelopment analysis models. The efficiency of cloud computing providers was evaluated based on the assumption of the non-cooperative game among cloud computing providers in which providers selfishly choose the best strategy to maximize their payoff with three stages. In the first stage, the performance of these providers over the past period was measured by a super slack-based measure. In the second stage, the performance in the future period was predicted by the new data envelopment analysis model: the past–present–future model based on resampling. In the last stage, the efficiency improvement was investigated by adopting the Malmquist productivity index. The findings of this study indicated that the percentage of inefficient providers would increase from 10% in the period from 2017 to 2020 to 20% for 2021 and 2024. Moreover, 30% of providers showed a regress in performance efficiency over the research period of 2017 to 2024. The results of this study provide an insight picture to the decision-makers, and this research will fill the gap in the literature as the first study that measures and predicts the performance efficiency of cloud computing service providers, which will provide a helpful reference for future studies.

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Section: Literature Reviewmentioning

confidence: 99%

Effective Decision Making: Data Envelopment Analysis for Efficiency Evaluation in the Cloud Computing Marketplaces

Wang

Nguyen

et al. 2021

Axioms

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“…Despite the significant private and public resources spent on predicting the effects of horizontal mergers, there is relatively little ex post empirical evidence of their effects to guide regulators. Furthermore, there is considerable recent research on the broader effects of merger activity (Amin & Boamah, 2021; Chiu et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

Evaluating merger effects

Genakos

Lamprinidis²,

Walker

2023

Manage Decis Econ

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This paper proposes a new algorithm to identify the potential effect of mergers by comparing the outcomes of interest in areas of overlap for the merging parties vis‐à‐vis areas where no overlap exists within a difference‐in‐differences estimation framework. Utilizing our proposed algorithm enables researchers and policymakers to perform retrospective merger evaluation studies that look at the effects of mergers on both price and non‐price aspects. We demonstrate the applicability and value of our proposed methodology by examining the effects on price and product variety of four mergers of the late 1980s and the 1990s on the U.K. car market.

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“…The merger scenario intends to build a strong financial backup by grouping the weaker banks with the relatively stronger ones in the sector (Arnold, 1998;Manufacturing Close-Up, 2019a). There are several criteria which are analyzed before the merger decision, such as the Non-Performing Asset (NPA) of the banks, profitability aspect of the banks, liquidity of the banks, and other aspects (Chiu, Lin, Chang, Lin, & Chiu, 2021;Jensen, 1988).…”

Section: Introductionmentioning

confidence: 99%

“…Seventh, there are strategic level reasons. Better management of power and resources is possible with the help of merger and acquisition (Feinberg, 1985;Chiu et al, 2021). Then, increased financial resources provide a better chance for survival in the long run and expand the business over the different market horizons (Brown & Warner, 1985).…”

Section: Introductionmentioning

confidence: 99%

Will Mergers and Acquisition Vacillate the Performance of Banks? A Case Study of Public Sector Banks in India

Roopesh¹,

Sandhya²

2022

Binus Business Review

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The recent change that the banking sector sees is the mergers and acquisitions occurring among the public sector banks. Merger and acquisition in the banking sector are part of the reform strategies to improve financial stability and gain smooth operational flow and synergy advantages. The research focused on the aspects of the banks' profitability, solvency, investment, and liquidity in the pre-and post-merger period. The research attempted to understand the varied reasons behind their mergers, acquisition, and success rate. The main objective was to understand the impact of synergy on the performance and profitability of banks. It was an exploratory research to understand the various objectives of mergers and to map the outcome of those objectives. The analysis was done through ratio analysis and paired t-test to gauge the impact of the pre-and post-merger scenario. The results find that the merger and acquisition are a positive move for some banks. However, there are certain banks which are coping at a slow pace with the synergy. The research also discovers that the synergy amongst the banks reacts in a varied way based on the objective of the mergers. The results indicate that the banks cope with the merger and acquisition at a varied pace due to various factors like Non-Performing Asset (NPA), debts, assets, and market share variabilities amongst the banks. The recent pandemic that the world faces can also be considered a factor for slower coping.

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

Cited by 9 publications

References 60 publications

Effective Decision Making: Data Envelopment Analysis for Efficiency Evaluation in the Cloud Computing Marketplaces

Effective Decision Making: Data Envelopment Analysis for Efficiency Evaluation in the Cloud Computing Marketplaces

Evaluating merger effects

Will Mergers and Acquisition Vacillate the Performance of Banks? A Case Study of Public Sector Banks in India

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