Table 4

t-test statistics for the difference in means of financial performance indicators of the treatment groups of (merged) banks

Financial performance indicatorAcquirer and target bank report
IFRSLocal GAAPTest statistic
Mean (std. error)Mean (std. error)t-value (p-value)H0
Loan loss provisions to loans3.3834 (0.3121)1.4222 (0.0423)8.9958 (0.0001)Reject
Total assets17.0994 (0.1466)15.5318 (0.0835)10.0168 (0.0001)Reject
Equity to assets8.4255 (0.6623)10.9643 (0.2276)−4.3817 (0.0001)Reject
Net loans to assets51.8297 (1.4494)63.6383 (0.6267)−8.6471 (0.0001)Reject
Liquid assets to deposits41.3045 (2.7893)17.0315 (2.8217)5.6009 (0.0001)Reject
Net loans to deposits82.4153 (2.4569)85.3786 (1.4991)−1.0893 (0.2763)Accept
Bank costs to income68.2106 (1.8781)64.9867 (0.8934)1.7527 (0.0800)Reject
Non-interest expenses to assets2.4721 (0.0959)3.4081 (0.0792)−7.2794 (0.0001)Reject
Net interest margin1.7393 (0.0572)3.4036 (0.0444)−22.6218 (0.0001)Reject
Other operating income to assets1.4025 (0.1102)1.5081 (0.0814)−0.7706 (0.4412)Accept
Return on equity4.9617 (1.1105)8.3896 (0.6029)−2.9626 (0.0031)Reject

Note(s): The null hypothesis is that the difference in the mean of the financial performance indicator is not significantly different from zero

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