Forecasting of Customers’ Retention In Terms of Merger and Acquisition Processes of Egyptian Banks Using Panel Data Techniques

17 Pages Posted: 10 Apr 2013 Last revised: 11 Apr 2013

See all articles by Nader Alber

Nader Alber

Ain Shams University

Essam Aziz

Ain Shams University - Faculty of Commerce

Date Written: April 9, 2013

Abstract

This paper aims at analyzing the response of banks’ customers, due to changes of banking market structure, where many of these customers may switch their banks, and this is why, determinants of these decisions should be elaborated. In this study, the sample contains 6 cases, out of 20 cases of merger and acquisition processes (M&As) between Egyptian banks, during the period from the beginning of 2005 to the end of 2010.

Using Panel Data Models, we could accept hypotheses regarding the effects of “Change in Bank Equity” and “Change in Bank Assets” on “Customers’ Retention”. Also, Results refer to the need to reject hypotheses regarding the effects of “Change in Bank Loans”, “Change in Bank Deposits", “Change in No. of Services” and "Change in No. of Branches”. Wu-Hausman test, Likelihood Ratio test and Breusch-Pagan test justify these results.

Keywords: Egyptian Banks, Customers’ Retention, Panel Data, M&As

Suggested Citation

Alber, Nader and Aziz, Essam, Forecasting of Customers’ Retention In Terms of Merger and Acquisition Processes of Egyptian Banks Using Panel Data Techniques (April 9, 2013). Available at SSRN: https://ssrn.com/abstract=2247709 or http://dx.doi.org/10.2139/ssrn.2247709

Nader Alber (Contact Author)

Ain Shams University ( email )

Cairo
Egypt

Essam Aziz

Ain Shams University - Faculty of Commerce ( email )

Abbassia 11566, Cairo
Egypt

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