This study examines the impact of M&A on the financial performance of banks
in Vietnam. The financial data of four banks namely BIDV bank, SACOM bank,
SHB bank and SCB Bank were used in this study. For the analysis of pre and
post-Merger and Acquisition performance, eleven ratios were used in the
study. The selected ratios for indicated bank over a period of six quarters
before (-6,- 5,-4,- 3,-2,- 1) and six quarters after (1, 2, 3, 4, 5, 6) the merger
event had been announced. The Paired sample t-test analysis was used to
compare the significant difference between pre and post-M&A performance.
The overall results show that there are only three ratios witnessed the
significant difference after merger namely Revenues, Total Deposits/ Total
Assets and Total Debts/ Total Deposit. The rest eight out of eleven financial
ratios did not experience any significant difference after merger.
Furthermore, the Malmquist index TFP was used to compare the total factor
productivity between pre and post - M&A. The Malmquist TFP results point
out that M&A did not help improve the total factor productivity thanks to
expanded scale as generally believed among Vietnam Banking sector.

This study examines the impact of M&A on the financial performance of banks
in Vietnam. The financial data of four banks namely BIDV bank, SACOM bank,
SHB bank and SCB Bank were used in this study. For the analysis of pre and
post-Merger and Acquisition performance, eleven ratios were used in the
study. The selected ratios for indicated bank over a period of six quarters
before (-6,- 5,-4,- 3,-2,- 1) and six quarters after (1, 2, 3, 4, 5, 6) the merger
event had been announced. The Paired sample t-test analysis was used to
compare the significant difference between pre and post-M&A performance.
The overall results show that there are only three ratios witnessed the
significant difference after merger namely Revenues, Total Deposits/ Total
Assets and Total Debts/ Total Deposit. The rest eight out of eleven financial
ratios did not experience any significant difference after merger.
Furthermore, the Malmquist index TFP was used to compare the total factor
productivity between pre and post - M&A. The Malmquist TFP results point
out that M&A did not help improve the total factor productivity thanks to
expanded scale as generally believed among Vietnam Banking sector.

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