This paper investigates the short-term market reaction of nine profit-efficiency, pre-classified merger deals of US banks over the time period from 1992 to 2003. The findings show that mergers combining low efficiency acquirers and targets create significant market returns following the merger...

We study, using the non-parametric data envelopment approach,we investigated the long-run profit efficiency dynamics and theshort-run market reaction of nine pre-classified merger deals ofmerging and non-merging U.S. banks over the time period from1992 to 2003. Our main results are as follows:...