Market perception of efficiency in bank holding company mergers: the roles of the DEA and SFA models in capturing merger potential
Abstract Using the Stochastic Frontier Approach (SFA) and Data Envelope Analysis (DEA), this study examines the influence of bank efficiencies on the market assessment of bank holding company (BHC) mergers. The following two questions are addressed: (1) Is the target BHC's frontier efficiency reflected in the bidder BHC's abnormal returns? and (2) Does the difference in frontier efficiency between the bidder and/or target banks relative to their peer institutions influence the acquirer's abnormal returns? In support of the Inefficient Management Hypothesis, the findings indicate that bidder wealth effects do incorporate the target's X-efficiency as well as the difference in bidder/target efficiencies relative to their peer institutions.
Because the reform of state-owned enterprises are developing in depth,how to ideological and political work is subsumed into the new system will become a new task in the enterprises' ideological and political work.The author believe the following ideas in order to promote the enterprises harmony development,namely,strengthening the enterprises' ideologi- cal and political work;inheriting and developing the good tradition in the stated-owned enterprises;combining with the en- terprises' innovation,the establishment of harmony enterprises,and the Party construction.