Impact of Mergers and Acquisitions on Operational Performance of Islamic Banking Sector

Merger and acquisition (hereafter MA) are the business expansion strategy. Islamic bank is niche banking sector compared to its peers while it categorized as too small succeed. The paper aims analyze impact of MA on operational performance sector. This study employs empirical research methods, namely cross-sectional pooled regression panel data a set samples consisting 10 banks involved in from 6 countries, drawn International Monetary Fund (IMF), World bank, Ficth Connect, Bloomberg over years 2009Q1to 2018Q4. estimated using accounting-based measures Herfindahl-Hirschman Index (HHI) concentration ratio (CR) applied signify market structure. Total assets, total deposits, operating income variables used represent size. findings indicate that size shows negative performance. While segregated level which larger concentrated structure has greater post-MA period. concludes by discussing policy implications for policymakers academicians having strategic decision deal further research.