Original article Mathematical and Quantitative Methods

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

Lachezar D. Borisov - Higher School of Insurance and Finance
Received: 02 Jun 2022
Revised:
Published:
Downloads: 0
Citations: 0
Issue 3/2020
JEL G21 G34 C14
DOI https://doi.org/10.56497/etj2065302

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.

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