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    Rights statement: This is the author’s version of a work that was accepted for publication in Economic Modelling. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economic Modelling, 73, 2018 DOI: 10.1016/j.econmod.2018.04.002

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Assessing the strategic fit of potential M&As in Chinese banking: A novel Bayesian stochastic frontier approach

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Assessing the strategic fit of potential M&As in Chinese banking: A novel Bayesian stochastic frontier approach. / Chen, Zhongfei; Wanke, Peter; Tsionas, Mike G.
In: Economic Modelling, Vol. 73, 06.2018, p. 254-263.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Chen, Z, Wanke, P & Tsionas, MG 2018, 'Assessing the strategic fit of potential M&As in Chinese banking: A novel Bayesian stochastic frontier approach', Economic Modelling, vol. 73, pp. 254-263. https://doi.org/10.1016/j.econmod.2018.04.002

APA

Chen, Z., Wanke, P., & Tsionas, M. G. (2018). Assessing the strategic fit of potential M&As in Chinese banking: A novel Bayesian stochastic frontier approach. Economic Modelling, 73, 254-263. https://doi.org/10.1016/j.econmod.2018.04.002

Vancouver

Chen Z, Wanke P, Tsionas MG. Assessing the strategic fit of potential M&As in Chinese banking: A novel Bayesian stochastic frontier approach. Economic Modelling. 2018 Jun;73:254-263. Epub 2018 Apr 18. doi: 10.1016/j.econmod.2018.04.002

Author

Chen, Zhongfei ; Wanke, Peter ; Tsionas, Mike G. / Assessing the strategic fit of potential M&As in Chinese banking : A novel Bayesian stochastic frontier approach. In: Economic Modelling. 2018 ; Vol. 73. pp. 254-263.

Bibtex

@article{a4a2cf5685e04eb29bf306cb8de8e1c8,
title = "Assessing the strategic fit of potential M&As in Chinese banking: A novel Bayesian stochastic frontier approach",
abstract = "Banking in China is well-known for being extremely fragmented, thus making the analysis of the sector not a straightforward task. This study aims to explore the strategic fit of potential mergers and acquisitions in the Chinese banking industry. When the operations of two banks are jointly analyzed this means that the inputs and the outputs of these two individual banks are somehow combined in an attempt to better understand the sector as a whole. A novel SFA model with Bayesian inference on input/output prices is proposed to assess the impact of business-related variables on efficiency levels. The results not only reveal that bank size, type, and origin present a significant impact on individual technical efficiency levels, but also exert a significant impact on the efficiency frontier of the industry. The strategic fit of M&As in the Chinese banking industry strongly relies on opportunities derived from banking automation that may arise from acquiring technologically obsolete small banks. Big and foreign banks also exert a positive impact on the technological catch-up of Chinese banks, which may suggest opportunities for sector deregulation.",
keywords = "Banks, China, Potential merger and acquisitions, SFA, Bayesian inference, Strategic fit",
author = "Zhongfei Chen and Peter Wanke and Tsionas, {Mike G.}",
note = "This is the author{\textquoteright}s version of a work that was accepted for publication in Economic Modelling. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economic Modelling, 73, 2018 DOI: 10.1016/j.econmod.2018.04.002",
year = "2018",
month = jun,
doi = "10.1016/j.econmod.2018.04.002",
language = "English",
volume = "73",
pages = "254--263",
journal = "Economic Modelling",
issn = "0264-9993",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Assessing the strategic fit of potential M&As in Chinese banking

T2 - A novel Bayesian stochastic frontier approach

AU - Chen, Zhongfei

AU - Wanke, Peter

AU - Tsionas, Mike G.

N1 - This is the author’s version of a work that was accepted for publication in Economic Modelling. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economic Modelling, 73, 2018 DOI: 10.1016/j.econmod.2018.04.002

PY - 2018/6

Y1 - 2018/6

N2 - Banking in China is well-known for being extremely fragmented, thus making the analysis of the sector not a straightforward task. This study aims to explore the strategic fit of potential mergers and acquisitions in the Chinese banking industry. When the operations of two banks are jointly analyzed this means that the inputs and the outputs of these two individual banks are somehow combined in an attempt to better understand the sector as a whole. A novel SFA model with Bayesian inference on input/output prices is proposed to assess the impact of business-related variables on efficiency levels. The results not only reveal that bank size, type, and origin present a significant impact on individual technical efficiency levels, but also exert a significant impact on the efficiency frontier of the industry. The strategic fit of M&As in the Chinese banking industry strongly relies on opportunities derived from banking automation that may arise from acquiring technologically obsolete small banks. Big and foreign banks also exert a positive impact on the technological catch-up of Chinese banks, which may suggest opportunities for sector deregulation.

AB - Banking in China is well-known for being extremely fragmented, thus making the analysis of the sector not a straightforward task. This study aims to explore the strategic fit of potential mergers and acquisitions in the Chinese banking industry. When the operations of two banks are jointly analyzed this means that the inputs and the outputs of these two individual banks are somehow combined in an attempt to better understand the sector as a whole. A novel SFA model with Bayesian inference on input/output prices is proposed to assess the impact of business-related variables on efficiency levels. The results not only reveal that bank size, type, and origin present a significant impact on individual technical efficiency levels, but also exert a significant impact on the efficiency frontier of the industry. The strategic fit of M&As in the Chinese banking industry strongly relies on opportunities derived from banking automation that may arise from acquiring technologically obsolete small banks. Big and foreign banks also exert a positive impact on the technological catch-up of Chinese banks, which may suggest opportunities for sector deregulation.

KW - Banks

KW - China

KW - Potential merger and acquisitions

KW - SFA

KW - Bayesian inference

KW - Strategic fit

U2 - 10.1016/j.econmod.2018.04.002

DO - 10.1016/j.econmod.2018.04.002

M3 - Journal article

VL - 73

SP - 254

EP - 263

JO - Economic Modelling

JF - Economic Modelling

SN - 0264-9993

ER -