The impact of mergers and acquisitions on the efficiency of GCC banks

Said Gattoufi, Saeed Al-Muharrami, Aiman Al-Kiyumi

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This study provides an empirical assessment of banking consolidation of commercial banks in Gulf Cooperation Council (GCC) countries. The DEA was used to trace the impact of Mergers and Acquisitions (M&A) on the technical efficiency of banks involved in the consolidation. The study considered 42 commercial banks over the period of 2003- 2007, 10 among them were involved in a consolidation activity during the period considered. By comparing the performance of the ten banks involved in consolidation with that of the whole sample and with those banks that did not go through consolidation, meaningful conclusions were made. The major result was that, though it was limited, there was a positive impact of M&A on the performance of commercial banks. Moreover, most of the banks involved in M&A realized an improvement higher than the average realized by the full sample, and hence improved their performances faster than the market.

Original languageEnglish
Pages (from-to)94-101
Number of pages8
JournalBanks and Bank Systems
Volume4
Issue number4
Publication statusPublished - 2009

Fingerprint

Mergers and acquisitions
merger
Consolidation
bank
acquisition
consolidation
efficiency
performance
Gulf Cooperation Council
banking
Commercial banks
market

Keywords

  • DEA
  • GCC banks
  • Mergers and acquisitions
  • Technical efficiency

ASJC Scopus subject areas

  • Finance

Cite this

The impact of mergers and acquisitions on the efficiency of GCC banks. / Gattoufi, Said; Al-Muharrami, Saeed; Al-Kiyumi, Aiman.

In: Banks and Bank Systems, Vol. 4, No. 4, 2009, p. 94-101.

Research output: Contribution to journalArticle

Gattoufi, Said ; Al-Muharrami, Saeed ; Al-Kiyumi, Aiman. / The impact of mergers and acquisitions on the efficiency of GCC banks. In: Banks and Bank Systems. 2009 ; Vol. 4, No. 4. pp. 94-101.
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