An Empirical Study On The Efficiency Of Overseas M&A Of Chinese Commercial Banks

Looking at the development of global international banks,cross-border mergers and acquisitions is the main form of expansion.With the deepening of China's financial market reform,China's commercial banks are bound to join in more intense international competition.In the rapidly changing international financial system,the advantages of entering foreign markets through cross-border mergers and acquisitions will become more prominent.At the same time,the improvement of efficiency is the starting point and destination of bank's overseas mergers and acquisitions,and the reduction of cost and the improvement of efficiency are the important internal causes of bank's overseas mergers and acquisitions.Therefore,it is necessary to study the existing cases of overseas mergers and acquisitions in China to see whether the overseas mergers and acquisitions of commercial banks improves the efficiency of banks.This paper starts with whether overseas mergers and acquisitions can improve the efficiency of the merged banks.Firstly,it summarizes the theoretical research and empirical research of efficiency,and puts forward the research ideas of this paper.Then,it expounds and analyzes the relevant economic theories of the efficiency of bank's overseas mergers and acquisitions,summarizes the synergy effect,market power theory and transaction cost theory in the process of bank's overseas mergers and acquisitions,and lays the theoretical foundation of this paper.Then,it analyzes the efficiency of overseas mergers and acquisitions of Chinese commercial banks from two aspects: efficiency evaluation and efficiency influencing factors.In the aspect of efficiency evaluation,BCC-DEA model and Malmquist index method are used to evaluate the efficiency change of overseas mergers and acquisitions of commercial banks in China from both static and dynamic perspectives.The conclusion is that no matter from the static or dynamic point of view,the overseas mergers and acquisitions of commercial banks in China has not brought obvious efficiency improvement to the merged banks,but has enhanced the sustainable operation ability of banks.The change of the comprehensive technical efficiency is mainly affected by the scale efficiency,but the scale efficiency has not been significantly improved.TFP index is mainly affected by the change of technological progress index.Technological progress can improve the efficiency of banks in the short term and ensure the sustainable operation of banks in the long term,which is the key to enhance the competitiveness of banks.The pure technical efficiency and technical efficiency index,which reflect the daily operation and management of the bank,show strong stability.In terms of the influencing factors of efficiency,increasing the shareholding ratio can give full play to the management technology advantages of the acquirer;the influence direction of the deposit loan ratio reflecting the financial situation on the bank efficiency is inconsistent,so the bank's overseas mergers and acquisitions should strengthen the financial risk management before and after the mergers and acquisitions;the higher the average return on assets,the higher the efficiency of the bank's operation and management;the scale of the bank assets of the acquire.It has little effect on efficiency,and scale efficiency mainly comes from the scope economy after scale expansion.In addition,the economic development level of the host country has no significant impact on the efficiency of the merged banks,while the business environment such as tax system has a significant positive impact on the efficiency of overseas mergers and acquisitions.Through the evaluation of the efficiency of overseas mergers and acquisitions of banks and the further analysis of its influencing factors,this paper holds that banks need to flexibly choose the target of mergers and acquisitions and make full use of the advantages of the host country's economic system and other policy environment.An important point in business management is to actively cultivate scientific and technological talents and international talents,so as to lead the development of the industry with innovation.At the same time,the scale effect of Chinese commercial banks' overseas mergers and acquisitions is not obvious,so we can expand the overseas market with the help of macroeconomic policies.In addition,banks face higher economic and financial risks in overseas mergers and acquisitions,so we should establish an international mergers and acquisitions risk management system.