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The impact of mergers and acquisitions on the efficiency of banks in Bulgaria

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  • Luchezar D. Borisov

Abstract

The “Data Envelopment Analysis” (DEA) non-parametric approach is used to study the impact of mergers and acquisitions in the banking sector in Bulgaria during the 2007-2018 period on the efficiency of banking units. The results of the analysis of the efficiency of the banks that went through this process show that, after the merger of the respective banking units, the acquiring banks manage to increase their scale efficiency and reach a technologically optimal scale of production several years after the merger. In addition, the findings show that most of them manage to reach maximum technical efficiency and are involved in shaping the boundary of efficiency of the entire banking system.

Suggested Citation

  • Luchezar D. Borisov, 2020. "The impact of mergers and acquisitions on the efficiency of banks in Bulgaria," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 66-85.
    • Handle: RePEc:bas:econth:y:2020:i:3:p:66-85
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    References listed on IDEAS

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    1. Berger, Allen N. & Humphrey, David B., 1997. "Efficiency of financial institutions: International survey and directions for future research," European Journal of Operational Research, Elsevier, vol. 98(2), pages 175-212, April.
    2. Nikolay Nenovsky & Petar Chobanov & Gergana Mihaylova & Darina Koleva, 2008. "Efficiency of the Bulgarian Banking System: Traditional Approach and Data Envelopment Analysis," ICER Working Papers 22-2008, ICER - International Centre for Economic Research.
    3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    4. Andries, Alin Marius & Cocris, Vasile, 2010. "A Comparative Analysis of the Efficiency of Romanian Banks," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 54-75, December.
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    Cited by:

    1. Gergana Mihaylova-Borisova, 2023. "Determinants of Credits on Private Sector in CEE Countries," Economic Research Guardian, Weissberg Publishing, vol. 13(1), pages 2-15, June.

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    More about this item

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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