The Impact of Bank Mergers - Acquisitions on The Efficiency Using (DEA) in North of Africa and the Middle East (MENA)

Abstract

This study tends to highlight the nature of the effect of merger and acquisition transactions in the banking efficiency in Middle East and North of Africa the MENA by applying a nonparametric method of Data Envelopment Analysis (DEA) from the beginning of the third millennium, and has been used the linear MaxDEA6.0 program, on a sample of 11 banks spread over North of Africa (Tunisia and Morocco) and the Middle East (Kuwait, UAE and Qatar) where a comparative technical competence index was used as a whole, and its parts on a time extension for the year preceding the process M & A (t-1) and two years post-process M & A ( t + 2). It has also been testing the quality of the model in terms of the representation of the inputs and outputs of the production process through the Statistical Package for Social Sciences (SPSS). The study reached the following conclusions: M &A operations did not show a positive impact on the technical efficiency of banks subject to the phenomenon, and that most of them recorded a decline in technical efficiency in merger and the year that followed and that the improvement in the technical efficiency indicators begin to appear during the second year after the process M&A. The decline in technical efficiency can be of either the lack of pure technical efficiency or scale efficiency or both.