Mergers among German cooperative banks: a panel-based stochastic frontier analysis

  • Based on an unbalanced panel of all Bavarian cooperative banks for the years of 1989-95 which includes information on 243 mergers, we analyze motives for and cost effectmerging, but point instead to a leveling off of differences among the merging units.s of small-scale mergers in German banking. Estimating a frontier cost function with a time-variable stochastic efficiency term we show that positive scale and scope effects from a merger arise only if the merged unit closes part of the former branch network. When we compare actual mergers to a simulation of hypothetical mergers, size effects of observed mergers turn out to be slightly more favorable than for all possible mergers. Banks taken over by others are less efficient than the average bank in the same size class, but exhibit on average the same efficiency as the acquiring firms. For the post-merger phase, our empirical results provide no evidence for efficiency gains from

Download full text files

Export metadata


Number of document requests

Additional Services

Share in Twitter Search Google Scholar
Author:Günter LangGND, Peter WelzelGND
Frontdoor URL
Series (Serial Number):Volkswirtschaftliche Diskussionsreihe (167)
Publisher:Volkswirtschaftliches Institut, Universität Augsburg
Place of publication:Augsburg
Type:Working Paper
Year of first Publication:1997
Publishing Institution:Universität Augsburg
Release Date:2020/02/25
Tag:JEL: G21, L29
Neuere Fassung erschienen in: Diskussionspapier / Friedrich-Schiller-Universität Jena / Wirtschaftswissenschaftliche Fakultät : Reihe B ; 1999/3, sowie in: Small Business Economics 13(1999), Heft 4, Seite 273–286 ;
Institutes:Wirtschaftswissenschaftliche Fakultät
Wirtschaftswissenschaftliche Fakultät / Institut für Volkswirtschaftslehre
Wirtschaftswissenschaftliche Fakultät / Institut für Volkswirtschaftslehre / Lehrstuhl für Ökonomie der Informationsgesellschaft
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Journals:Volkswirtschaftliche Diskussionsreihe
Licence (German):Deutsches Urheberrecht