Cost Efficiency Analysis Of Chinese Commercial Banks Cross-border M&A Based On DEA

Since the20th century, Many banks shift the focus to the external expansion strategyin order to capture the strategic resources and the twenty-first Century Financialdominance. Through mergers and acquisitions, banks obtain the competitive advantage.With the growing scale of international merger and reorganization, banking has graduallybecome the hot industry in global M&A market. In recent years, Chinese commercialbanks are actively exploring the road of internationalization. At the same time, mergers andacquisitions overseas are carried out. In this paper, we did the analysis of Chinese Bank ofoverseas M&A on their performance, so that explore how to through transnationalmergers and acquisitions to achieve their business performance. By this way, we canpromote the Chinese bank M&A activities carried out and upgrade the corecompetitiveness of Chinese banks continuously.Firstly, the basic meaning of bank mergers and acquisitions were defined, and theefficiency theory of bank mergers and acquisitions were elaborate basically. And the paperanalyze on the bank mergers and acquisitions of the last century.In order to grasp the effects of macro environmental factors on Chinese-funded banksoverseas mergers and acquisitions, we studied on the macro environment of Chinese bankmergers and acquisitions. And we draw lessons from British scholar Gerry Johnson (GerryJohnson) and Kevan Scholes (Kevan Schole) to use PEST analysis. from the political andlegal factors, economic factors (Politics)(econom), social and cultural factors (Society)and technical factors (Technology) these four aspects were used to construct theChinese-funded banks overseas mergers and acquisitions macro environmental factors.Through the analysis, we validate of the influence of the macro environment for theefficiency of bank mergers and acquisitions.Studying on the efficiency of Chinese commercial banks overseas M&A made anempirical analysis. By using the data envelopment analysis (DEA) M&A case analysis,the empirical results showed that banks overseas M&A cost efficiency and the timechange was not consistent. Overseas M&A didn`t significantly promote the Chinesecommercial bank cost efficiency, however integration problems made their cost efficiencydecreased, but not apparent.Based on the above analysis, the paper of the Chinese commercial banks overseas M &A were summarized. And on this basis, suggestions to improve the efficiency of Chinesebanks overseas M&A cost efficiency were produced.