Non-parametric analysis of bank merger gains: The case of Vietnam

Over the last years, the banking sector in Vietnam has been going through the restructuring period, in order to cope with non-performing loans and build up mergers and acquisitions. This paper applies the non-parametric method proposed by Bogetoft and Wang in 2005 to evaluate the bank merger gains i...

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Autores principales:	Phuong Anh Nguyen, Linh Dan Pham
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2020
Materias:	vietnam commercial banks mergers potential gains technical efficiency scale efficiency harmony effect Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/2cee6c55bd874e72ad0e8f25b9afe1ee
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spelling	oai:doaj.org-article:2cee6c55bd874e72ad0e8f25b9afe1ee2021-12-02T14:41:55ZNon-parametric analysis of bank merger gains: The case of Vietnam2331-197510.1080/23311975.2020.1823582https://doaj.org/article/2cee6c55bd874e72ad0e8f25b9afe1ee2020-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2020.1823582https://doaj.org/toc/2331-1975Over the last years, the banking sector in Vietnam has been going through the restructuring period, in order to cope with non-performing loans and build up mergers and acquisitions. This paper applies the non-parametric method proposed by Bogetoft and Wang in 2005 to evaluate the bank merger gains in Vietnam during the period 2010–2016. The potential gains from mergers are thus estimated and decomposed into technical efficiency, scale efficiency and harmony effect. The results indicate that under the production approach, all six mergers obtain potential gains with the main sources from technical efficiency and harmony effect. Under the intermediation approach, five mergers exhibit potential gains with the main source from harmony effect, while technical efficiency contributes to the potential gain of two mergers. Accordingly, banks could benefit from the new management or learn from the more efficient ones and reap benefits from harmony effect by reallocating the service portfolio of related parties in the merger to boost their activities. The post-merger efficiency scores are also calculated and are found to increase slightly compared to the efficiency scores before merger, which supports the statement that mergers help banks improve their efficiency. This paper contributes to the gap of lacking analysis on mergers and acquisitions in Vietnam banking sector.Phuong Anh NguyenLinh Dan PhamTaylor & Francis Grouparticlevietnam commercial banksmergerspotential gainstechnical efficiencyscale efficiencyharmony effectBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 7, Iss 1 (2020)
institution	DOAJ
collection	DOAJ
language	EN
topic	vietnam commercial banks mergers potential gains technical efficiency scale efficiency harmony effect Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	vietnam commercial banks mergers potential gains technical efficiency scale efficiency harmony effect Business HF5001-6182 Management. Industrial management HD28-70 Phuong Anh Nguyen Linh Dan Pham Non-parametric analysis of bank merger gains: The case of Vietnam
description	Over the last years, the banking sector in Vietnam has been going through the restructuring period, in order to cope with non-performing loans and build up mergers and acquisitions. This paper applies the non-parametric method proposed by Bogetoft and Wang in 2005 to evaluate the bank merger gains in Vietnam during the period 2010–2016. The potential gains from mergers are thus estimated and decomposed into technical efficiency, scale efficiency and harmony effect. The results indicate that under the production approach, all six mergers obtain potential gains with the main sources from technical efficiency and harmony effect. Under the intermediation approach, five mergers exhibit potential gains with the main source from harmony effect, while technical efficiency contributes to the potential gain of two mergers. Accordingly, banks could benefit from the new management or learn from the more efficient ones and reap benefits from harmony effect by reallocating the service portfolio of related parties in the merger to boost their activities. The post-merger efficiency scores are also calculated and are found to increase slightly compared to the efficiency scores before merger, which supports the statement that mergers help banks improve their efficiency. This paper contributes to the gap of lacking analysis on mergers and acquisitions in Vietnam banking sector.
format	article
author	Phuong Anh Nguyen Linh Dan Pham
author_facet	Phuong Anh Nguyen Linh Dan Pham
author_sort	Phuong Anh Nguyen
title	Non-parametric analysis of bank merger gains: The case of Vietnam
title_short	Non-parametric analysis of bank merger gains: The case of Vietnam
title_full	Non-parametric analysis of bank merger gains: The case of Vietnam
title_fullStr	Non-parametric analysis of bank merger gains: The case of Vietnam
title_full_unstemmed	Non-parametric analysis of bank merger gains: The case of Vietnam
title_sort	non-parametric analysis of bank merger gains: the case of vietnam
publisher	Taylor & Francis Group
publishDate	2020
url	https://doaj.org/article/2cee6c55bd874e72ad0e8f25b9afe1ee
work_keys_str_mv	AT phuonganhnguyen nonparametricanalysisofbankmergergainsthecaseofvietnam AT linhdanpham nonparametricanalysisofbankmergergainsthecaseofvietnam
_version_	1718389859220979712

Non-parametric analysis of bank merger gains: The case of Vietnam

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