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Predicted and actual costs from individual bank mergers [An article from: Journal of Economics and Business]
Book Details
Author(s)S.C. Valverde, D.B. Humphrey
PublisherElsevier
ISBN / ASINB000RQZD6S
ISBN-13978B000RQZD64
AvailabilityAvailable for download now
Sales Rank99,999,999
MarketplaceUnited States 🇺🇸
Description
This digital document is a journal article from Journal of Economics and Business, published by Elsevier in 2004. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
Using translog, Fourier, and cubic spline cost functions, we predict scale-related cost effects from 22 individual mergers among Spanish savings banks over 1986-2000. Our individual predictions are as good as those made by merger participants themselves since they, and we, only correctly predict the sign change one-third of the time. Our cost models do a better job in accurately predicting the average or expected value of the cost effect for all mergers as a group. Overall, unit cost was reduced by about 0.50%, raising asset returns by 4%, and improving resource utilization.
Description:
Using translog, Fourier, and cubic spline cost functions, we predict scale-related cost effects from 22 individual mergers among Spanish savings banks over 1986-2000. Our individual predictions are as good as those made by merger participants themselves since they, and we, only correctly predict the sign change one-third of the time. Our cost models do a better job in accurately predicting the average or expected value of the cost effect for all mergers as a group. Overall, unit cost was reduced by about 0.50%, raising asset returns by 4%, and improving resource utilization.
