Evaluation of post-mergers efficiency on banks in Malaysia

The East Asian Financial crisis hit Malaysia’s economy adversely and forced the government to restructure the banking industry by reducing the number of local financial institutions to ten anchor banking groups. In this paper, we adopted the Data Envelopment Analysis (DEA) approach to determine whet...

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Bibliographic Details
Main Authors: Chew, Kin Leon, Tan, Kenneth Kaijia, Yang, Weiren
Other Authors: Lau, Sie Ting
Format: Final Year Project
Published: 2008
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Online Access:http://hdl.handle.net/10356/10089
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Institution: Nanyang Technological University
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Summary:The East Asian Financial crisis hit Malaysia’s economy adversely and forced the government to restructure the banking industry by reducing the number of local financial institutions to ten anchor banking groups. In this paper, we adopted the Data Envelopment Analysis (DEA) approach to determine whether the average efficiency of the banks improved post-mergers. In addition, correlations between financial ratios and the efficiency level of the banks were tested and financial ratios analyzed to establish whether the results drew the same conclusion as the DEA approach.