Performance Measurement For Merger And Acquisition Of Banks Based On Two-stage DEA And The Influencing Factors

With the rapid development of China’s economy in recent years,the wave of merger and acquisition(M&A)appears with the adjustment of industrial structure.The banking industry bears the brunt of the economic market adjustment,and merger and acquisition is an important means to implement the financial reform.Synergies from mergers and acquisitions have helped banks reduce costs and increase profits.As adopted the twostage slack-based measure(SBM),this paper measures the banks involved in M&A in 2004-2018 of two stage performance and productivity change,using Chinese listed Banks sample analysis of the role and importance of M&A in banking reform period,and to further explore M&A how to influence bank performance and the influence factors of M&A effect.The main work is as follows:(1)We construct a two-stage static evaluation model of performance considering non-expected output.First,the process of deposit generation(fund accumulation stage)and the profit-making process are combined into a two-stage structure of the banking system.On this basis,a slack measurement model considering the weak disposability of non-performing output is constructed,and the performance of 14 M&A banks in my country is measured.In general,banks’ mergers and acquisitions mostly occur when the efficiency is low,and the bank’s capital accumulation stage performs better,while there is a learning phenomenon in the profit stage.(2)When studying the dynamic M&A performance of banks,we use the global Malmquist index to evaluate the performance changes of banks in the M&A process,and analyze the efficiency changes and technological changes of the whole system and at each stage.In addition,in order to formulate M&A plans,we classified M&A banks from two perspectives to obtain stages for improvement and development trends to draw on:(I)they are divided into four categories according to the performance of the two stages;(ii)It can be divided into four categories according to the rate of change of efficiency and technology.Finally,the paper puts forward some policy suggestions for banks to participate in M&A.(3)The factors affecting the bank performance of Chinese listed banks are analyzed using the difference-in-difference model and the Tobit regression model.The regression analysis of M&A events shows that the process of bank M&A has a positive impact on the bank’s overall performance and profitability,while it has a negative impact on the efficiency of capital accumulation.Using the double difference model to verify the effective implementation of the merger and reorganization policy in 2010,the analysis found that the policy generally improved the overall performance and profitability of listed banks,but reduced the bank’s capital accumulation performance.It further analyzes the moderating effect of bank nature and financial marketization degree on M&A effect,and completely examines the relationship between M&A and performance.Therefore,this paper evaluates bank performance from the perspective of mergers and acquisitions,and explores the law of bank mergers and acquisitions.In addition,the effect of M&A on banks is divided into the M&A effect brought by M&A behavior and the policy effect brought by M&A policy,and the effect of M&A on banks is refined in cooperation with the two-stage bank M&A performance.From these two perspectives,the conclusion of this paper has strong practical reference significance for banks and M&A policy makers who formulate M&A plans.