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Value creation and appropriation following M&A: A data envelopment analysis

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  • Rahman, Mahabubur
  • Lambkin, Mary
  • Hussain, Dildar

Abstract

Mergers and acquisitions (M&As) are typically inspired by a desire for revenue growth and/or cost efficiency leading to an improvement in financial performance. Post-merger performance has received considerable research attention from scholars in finance and accounting, but the marketing dimension has remained largely unexplored. This research focuses on marketing efficiency as a measure of post-merger performance, and this is investigated via an empirical study of 20 M&A deals within the US commercial banking industry. Data Envelopment Analysis (DEA) is used to measure efficiency, employing two input and two output variables. The results demonstrate that M&A transactions do have a positive effect on the marketing efficiency of the combined firms, although the effect size is small.

Suggested Citation

  • Rahman, Mahabubur & Lambkin, Mary & Hussain, Dildar, 2016. "Value creation and appropriation following M&A: A data envelopment analysis," Journal of Business Research, Elsevier, vol. 69(12), pages 5628-5635.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:12:p:5628-5635
    DOI: 10.1016/j.jbusres.2016.03.070
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    4. Doumpos, Michalis & Zopounidis, Constantin & Gounopoulos, Dimitrios & Platanakis, Emmanouil & Zhang, Wenke, 2023. "Operational research and artificial intelligence methods in banking," European Journal of Operational Research, Elsevier, vol. 306(1), pages 1-16.
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    6. Lie Heng & Nur Afifah, 2020. "Entrepreneurial Orientation for Enhancement of Marketing Performance," International Review of Management and Marketing, Econjournals, vol. 10(3), pages 46-53.
    7. Stephen N. Jurich & M. Mark Walker, 2021. "Deal motivations and bargaining power: do executives show their hand in SEC filings?," SN Business & Economics, Springer, vol. 1(4), pages 1-28, April.
    8. Sen Wang & Zhijun Zhang, 2018. "Research on China’s M&A Efficiency Based on DEA–Tobit," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(4), pages 232-232, March.

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