Factors affect bad debt management of banks post mergers under staff view

Abstract

Since mergers has been employed as the major mechanism of banks’ restructuring in 2005- 2015 period, bad debt
management has also been covered by researchers in order to evaluate the effectiveness of merger deals and to give
suggestion to banks to meet targets of personnel integration post mergers. This study focuses on estimation of factors
that affect employees controlling bad debt after the deals and applies linear logistic regression to examine the influences,
relations between them. The results show that, via employees’ view, system expansion, risk management and credit
management have impact on bad debt management of banks post mergers. However, the increase in size of banks by
mergers seemed has lessen effect than the two other components. And banks must raise their lending rates in line with
tighten lending standards to get better in risk management as well as controlling bad debt. Moreover, our findings also
show that, employees from target banks may appear more sensitive and fragile in new environment than those from
partners.