The Effect Of Mergers And Acquisitions On Bank Performance In Vietnam
Abstract
In recent years, the banking industry in Vietnam has been gradually developing
to catch up with the country's economic growth. This pushes banks to have specific plans
for operation, including Mergers and Acquisitions. M&A has a significant impact on
banking performance, however, most banks have not actively participated, and there is
not much research on this topic in Vietnam. This study aims to understand the effect of
M&A on the performance of the Vietnamese commercial banking system, with the
research method using panel data regression, combined with measurement through
Tobin’s Q ratio and the CAMELS approach.
The results show that M&A has a negative significant impact on bank
performance. In addition, the variables of capital adequacy (CAR), asset quality (NPLs),
earnings (ROE), and sensitivity (SEN) belong to the set of explanatory variables
according to CAMELS criteria, and macroeconomic variables (INF, GDP) also have a
significant impact on bank performance.