Impact of Mergers and Acquisitions on Shareholder Wealth in Indian Banks: A Data Envelopment Analysis Approach

Impact of Mergers and Acquisitions on Shareholder Wealth in Indian Banks: A Data Envelopment Analysis Approach

ISBN13: 9798369302552|ISBN13 Softcover: 9798369302569|EISBN13: 9798369302576
DOI: 10.4018/979-8-3693-0255-2.ch014
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MLA

Jena, Trilochan, et al. "Impact of Mergers and Acquisitions on Shareholder Wealth in Indian Banks: A Data Envelopment Analysis Approach." Data Envelopment Analysis (DEA) Methods for Maximizing Efficiency, edited by Adeyemi Abel Ajibesin and Narasimha Rao Vajjhala, IGI Global, 2024, pp. 305-330. https://doi.org/10.4018/979-8-3693-0255-2.ch014

APA

Jena, T., Sanyal, P. K., & Sreekumar, ‑. (2024). Impact of Mergers and Acquisitions on Shareholder Wealth in Indian Banks: A Data Envelopment Analysis Approach. In A. Ajibesin & N. Vajjhala (Eds.), Data Envelopment Analysis (DEA) Methods for Maximizing Efficiency (pp. 305-330). IGI Global. https://doi.org/10.4018/979-8-3693-0255-2.ch014

Chicago

Jena, Trilochan, Pradipta Kumar Sanyal, and ‑ Sreekumar. "Impact of Mergers and Acquisitions on Shareholder Wealth in Indian Banks: A Data Envelopment Analysis Approach." In Data Envelopment Analysis (DEA) Methods for Maximizing Efficiency, edited by Adeyemi Abel Ajibesin and Narasimha Rao Vajjhala, 305-330. Hershey, PA: IGI Global, 2024. https://doi.org/10.4018/979-8-3693-0255-2.ch014

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Abstract

In today's changing business environment characterized by complexity and volatility, the Indian banking sector is witnessing tough competition from national and multinational players. In this study, the authors studied the Indian bank mergers between 2006 and 2018 to measure the impact of mergers and acquisitions (M&A) on efficiency in financial performance. A sample of four Indian banks—State Bank of India, Bank of Baroda, HDFC Bank, and Kotak Mahindra Bank—was selected based on market capitalization. This chapter evaluated five years of pre- and post-merger financial efficiency to measure the impact of M&A on efficiency in financial performance. The authors considered seven critical variables impacting the performance of Indian banks for the study. The non-parametric technique data envelopment analysis (DEA) is used for efficiency measurement over the period. The study shows that mergers and acquisitions positively impact the enhancement of financial efficiency.

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