The impact of mergers and acquisitions (M&A) on bank efficiency in Europe: a PRISMA-compliant systematic review of DEA applications

This article identifies, presents and analyses the applications of the leading non-parametric DEA (data envelopment analysis) methodology in the assessment of the impact M&A transactions in European banking had on bank efficiency. The main goal of this paper is to identify all the relevant published studies in this area thus far, as well as to present and analyse the findings regarding the impact of M&As on banks’ efficiency. Another goal of this article is to provide a theoretical background to the processes of M&As in banking and the leading non-parametric DEA methodology. This paper conducts a systematic review according to the PRISMA statement guidelines with stringent selection criteria to include relevant Data Envelopment Analysis (DEA) studies on the impact of mergers and acquisitions (M&As) on bank efficiency in Europe. The authors have surveyed the two largest scientific databases, i.e. Scopus and Clarivate Web of Science databases with the keywords „DATA ENVELOPMENT ANALYSIS“, “BANK”, “MERGER” and “ACQUISITION”. The PRISMA method has led the authors to a total of 7 relevant papers regarding the impact of M&A on bank efficiency in Europe. The ultimate goal of this paper is to raise awareness to academic members, researchers and analysts globally to employ the DEA methodology more often when it comes to measuring the effects and impact of M&A transactions in banking.