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Merger and acquisitions in South African banking: a network DEA model

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dc.contributor.authorWanke, Peter
dc.contributor.authorMaredza, Andrew
dc.contributor.authorGupta, Rangan
dc.contributor.researchID24827614 – Maredza, Andrew
dc.date.accessioned2018-06-19T05:58:36Z
dc.date.available2018-06-19T05:58:36Z
dc.date.issued2017
dc.description.abstractBanking in South Africa is known for its small number of companies that operate as an oligopoly. This paper presents a strategic fit assessment of mergers and acquisitions (M&A) in South African banks. A network DEA (Data Envelopment Analysis) approach is adopted to compute the impact of contextual variables on several types of efficiency scores of the resulting virtual merged banks: global (merger), technical (learning), harmony (scope), and scale (size) efficiencies. The impact of contextual variables related to the origin of the bank and its type is tested by means of a set of several robust regressions to handle dependent variables bounded in 0 and 1: Tobit, Simplex, and Beta. The results reveal that bank type and origin impact virtual efficiency levels. However, the findings also show that harmony and scale effects are negligible due to the oligopolistic structure of banking in South Africa.
dc.identifier.citationWanke, P. et al. 2017. Merger and acquisitions in South African banking: a network DEA model. Research in International Business and Finance, 41:362–376. [https://doi.org/10.1016/j.ribaf.2017.04.055]
dc.identifier.issn2755319
dc.identifier.urihttps://doi.org/10.1016/j.ribaf.2017.04.055
dc.identifier.urihttp://hdl.handle.net/10394/27629
dc.language.isoen
dc.publisherElsevier
dc.subjectBanks
dc.subjectSouth Africa
dc.subjectMerger and acquisitions
dc.subjectNetwork
dc.subjectDEA
dc.subjectRobust regression analysis
dc.titleMerger and acquisitions in South African banking: a network DEA model
dc.typeArticle

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