Journal ArticleDOI
Consolidation and efficiency in the US life insurance industry
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In this paper, the authors examined the relationship between mergers and acquisitions, efficiency, and scale economies in the US life insurance industry and found that acquired firms achieve greater efficiency gains than firms that have not been involved in mergers or acquisitions.Abstract:
This paper examines the relationship between mergers and acquisitions, efficiency, and scale economies in the US life insurance industry. We estimate cost and revenue efficiency over the period 1988–1995 using data envelopment analysis (DEA). The Malmquist methodology is used to measure changes in efficiency over time. We find that acquired firms achieve greater efficiency gains than firms that have not been involved in mergers or acquisitions. Firms operating with non-decreasing returns to scale (NDRS) and financially vulnerable firms are more likely to be acquisition targets. Overall, mergers and acquisitions in the life insurance industry have had a beneficial effect on efficiency.read more
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Journal ArticleDOI
The consolidation of the financial services industry: Causes, consequences, and implications for the future
TL;DR: In this article, a framework for evaluating the causes, consequences, and future implications of financial services industry consolidation is proposed, and a review of the extant research literature within the context of this framework is provided.
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Evaluation of research in efficiency and productivity:a survey and analysis of the first 30 years of scholarly literature in DEA
TL;DR: An extensive, if not nearly complete, listing of DEA research covering theoretical developments as well as "real-world" applications from inception to the year 2007 is presented.
Book
Globalization of Financial Institutions: Evidence from Cross-Border Banking Performance
TL;DR: In this article, the causes, consequences, and implications of cross-border consolidation of financial institutions by reviewing several hundred studies, providing comparative international data, and estimating cross-bank efficiency in France, Germany, Spain, the U.K., and the United States during the 1990s.
Journal ArticleDOI
The Economic Effects of Technological Progress: Evidence from the Banking Industry
Allen N. Berger,Allen N. Berger +1 more
TL;DR: In this paper, the authors examined the available evidence on technological progress and its effects in the banking industry and suggested improvements in costs and lending capacity due to improvements in back office technologies, as well as consumer benefits from improved front-office technologies.
Journal ArticleDOI
Consolidation and efficiency in the financial sector: A review of the international evidence ☆
TL;DR: This article found that consolidation in the financial sector is beneficial up to a relatively small size, but there is little evidence that mergers yield economies of scope or gains in managerial efficiency, and they also found that the benefits of mergers depend on the country, industry and time period analyzed.
References
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Productivity growth, technical progress and efficiency change in industrial countries
TL;DR: In this article, the authors analyzed productivity growth in seventeen OECD countries over the period 1979-88 and found that U.S. productivity growth is slightly higher than average, all of which is due to technical change.
Posted Content
Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries
TL;DR: In this article, a nonparametric programming method (activity analysis) is used to compute the Malmquist productivity indexes, which are decomposed into two component measures, namely, technical change and efficiency change.
Book
Theory of cost and production functions
TL;DR: In this article, a unified treatment of cost and production functions underlie the economic theory of production is presented, and the duality between cost function and production function is developed by introducing a cost correspondence, showing that these two functions are given in terms of each other by dual minimum problems.
Journal ArticleDOI
Efficiency of financial institutions: International survey and directions for future research
TL;DR: The authors survey 130 studies that apply frontier efficiency analysis to financial institutions in 21 countries and find that the various efficiency methods do not necessarily yield consistent results and suggest some ways that these methods might be improved to bring about findings that are more consistent, accurate, and useful.