In this paper we investigate the performance of the Austrian banks which have, either actively or passively, participated in a domestic intra-banking merger or acquisition operation since 1995. For this purpose we apply the DEA methodology in combination with a Tobit regression approach to account for the variation of the technical efficiency score due to external determinants. In order to cope with the inherent dependency problem of DEA-based efficiency scores when incorporated into regression analysis we propose a Bootstrap method. The data set used comprises an unbalanced panel of data of about 800 Austrian banks ranging over 1999 to 2002. The empirical findings support the view that intra-banking merger and acquisition activities have a positive influence on banking efficiency.
Efficiency measurement data envelopment analysis mergers and acquisitions banking