Research On M&A Efficiency Of Commercial Banks Based On Malmquist Index

With the continuous development of economic globalization,the financial industry in various countries has generally implemented mixed operation,maximizing profit by scale operation and diversifying risk by diversification.With the opening up of China's financial market and the gradual deepening of financial system reform,the M & A activities in China's banking industry are also increasing.Especially in the past ten years,the scale of M & A and the number of mergers and acquisitions have been increasing significantly.By looking at home and abroad for bank mergers and acquisitions efficiency study found that foreign bank merger performance research literature is relatively abundant,relatively long history,most of the empirical analysis of the use of big data,and summarized the influencing factors of bank mergers and acquisitions.However,the characteristics and background of foreign banks' merger and acquisition are quite different from those of China's bank mergers and acquisitions,and there are obvious differences in their economic consequences.In China,there are few researches on bank mergers and acquisitions performance,especially for the analysis of China's reality.Based on the 2006-2016 years of China's commercial banks a total of fifty cases of mergers and acquisitions as the research object,using the Malmquist index to measure changes in bank efficiency of mergers and acquisitions,to study the various factors affecting the efficiency of bank mergers and acquisitions and by using regression model,the research on the efficiency of bank mergers in china.By using the Malmquist index to measure changes in M&A efficiency,it is found that M&A has generally improved the efficiency of the main parallel,indicating that M&A has had a positive impact on commercial banks.According to the Malmquist index formula decomposition,the improvement of M&A efficiency mainly comes from the change of efficiency,rather than the change of technology.This shows that during this period,China's banking industry's technical input was insufficient or its effect was not obvious,and it did not have a positive effect.The increase in scale and overall efficiency has brought about a positive and positive effect,which has greatly improved the productivity of banks.Through the regression model,we studied seven factors that affect the efficiency of mergers and acquisitions,and found out whether the merger experience of M&A and product concentration of the target party had no significant effect on the change of M&A efficiency.According to the types of mergers and acquisitions,the efficiency growth of domestic M&A is greater than that of overseas mergers and acquisitions,and the growth rate of M&A in the same industry is greater than that of mixed M&A.It shows that the efficiency of mergers and acquisitions with high geographic concentration is higher than that of mergers with low geographic concentration.The target party chooses the efficiency of the banking industry to improve the efficiency of the main party.In addition,the regression model also shows that if the main merger is a state-owned bank,the likelihood of successful mergers and acquisitions is greater;the better the growth of the target party(good operation,stable growth of assets,or even a strong growth momentum),There is a strong positive effect on the efficiency increase of the main parallel merger and acquisition;if the size of the main parallel assets is larger,or the target's asset size is relatively small,the efficiency of the merger and acquisition will increase.Based on the establishment of two quantitative models,the main recommendation of this paper is to focus on the selection of M & A targets at the bank level,evaluate the target banks prudently,improve operational capabilities and speed up the process of resource integration.To improve the whole financial market environment from the market level and effectively promote the merger and acquisition of Chinese banks,we need to speed up the marketization reform of banks,enhance the market main body status of commercial banks,and improve the main body and M & a mode of bank mergers and acquisitions.From the government level,we should continue to urge our commercial banks to adjust their property rights structure,and provide targeted legal protection to provide more strategic choice and transformation space for them to meet the needs of financial market.This paper summarizes the change of M & A efficiency and the factors that influence the efficiency of M & A in China.The conclusion is suitable for China's specific economic environment,which helps micro decision-makers to identify M & a strategy and macro decision-makers to formulate relevant policies.