EFFECT OF MERGER ON EFFICIENCIES: A STUDY OF TAIWANESE HIGHER EDUCATION

Back to Page Authors: Chiou Rung Chen

Keywords: data envelopment analysis (DEA), technical efficiency, pure technical efficiency, scale efficiency, merger

Abstract: This study applies nonparametric data envelopment analysis (DEA) to investigate two cases of educational university mergers. The purpose of this study is by comparing the performance differences between pre-merger and post-merger universities to provide a reference for policy makers and management to solve the higher education crisis in Taiwan. This study finds that it seems, so far, no significantly merger synergies reflecting in efficiencies improvement are found from the two cases of post-merger in Taiwan. National Pingtung University (NPTU) is still technical efficiency university after merger. Their efficiency scores are always 1.0 from 2012 to 2017, except 2014. Though, National Tsing Hua University (NTHU) suffers from decay of efficiency scores after merger; their technical efficiency, pure technical efficiency and scale efficiency all dropped after merger.