International Review of Economics

, Volume 54, Issue 2, pp 261–283 | Cite as

Deregulation, consolidation and banks efficiency in Singapore: Evidence from event study window approach and Tobit analysis

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Abstract

A three-year window analysis together with the Data Envelopment Analysis (DEA) approach is employed to investigate the effects of mergers and acquisitions on the Singapore banking groups’ efficiency. The results suggest that the merger has resulted in a higher Singapore banking groups’ mean overall efficiency. We do not find evidence of more efficient acquirers compared to the targets and that the acquiring banks’ mean overall efficiency tends to improve from the merger with a more efficient bank. The Tobit regression results suggest that bank profitability has positive impact on bank efficiency, whereas poor loan quality has negative influence on bank performance. (JEL: G21, D24)

Keywords

bank mergers Data Envelopment Analysis Singapore Tobit model 
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Copyright information

© Springer-Verlag 2007

Authors and Affiliations

  1. 1.Planning and Research Department (BCB), Bumiputra-Commerce Bank Berhad and Department of Banking and FinanceUniversity of MalayaKuala LumpurMalaysia
  2. 2.Central Bank of Malaysia and Monetary and Financial Policy DepartmentBank Negara MalaysiaKuala LumpurMalaysia

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