Bank Mergers and Operation Performanc－The Analysis of Scale Economes, Scope Economes and Efficiency

• Main Authors: Yuan-feng Ou Yang, 歐陽遠芬
• Other Authors: Bih-shiow Chen
• Format: Others
• Language: zh-TW
• Published: 1999
• Online Access: http://ndltd.ncl.edu.tw/handle/25636271873561979662

碩士 === 東吳大學 === 經濟學系 === 87 === A major issue analyzed among this paper is whether mergers enhance the efficiency of acquising banks, and if the scale economies and scope economics will happen after the merger. The analysis covers 45 domestic banks in Taiwan from 1981 to 1997, but there are only 5 bank mergers happened before 1997. They are Bank of Overseas Chinese, United World Chinese Commercial Bank, Pan Asia Bank, Makoto Bank and Bank of Panhsin. So we are just aimed at this 5 banks to analyze. In this paper we use panel data of domestic banks to estimate translog cost function, and use frontier approach to measured cost efficiency. The results indicate that domestic mergers are found no gains in cost efficiency. We think that is because acquising banks bear too many bad debts of credit cooperative in the beginning of merger period. Our analysis show that acquising banks yield no significant improvement in scale economies. The result means acquising banks just reach the optimum scale of output after the merger, and they should not keep enlarging the scale now. We also find that there is no scope economies in pro- and postmerger.