This study evaluates telecommunications industry efficiency in 19 countries grouped into high income countries (HICs) and middle income countries (MICs). Using data from 2001-2013 and a two-stage Data Envelopment Analysis (DEA), it finds that while HICs outperformed MICs, both of the groups exhibited improved technical efficiency, managerial effectiveness, and operational scale. Additionally, time in deregulation enhances technical and scale efficiency in HICs, however, the influence is insignificant in MICs. Labour productivity drives technical efficiency in HICs. Also, it augments managerial resourcefulness in HICs and MICs, however, its influence on scale efficiency is immaterial. Revenue per subscription enhance technical efficiency and managerial effectiveness in the two groups of countries. The relationship with scale efficiency, which is positive in HICs is irrelevant in MICs. Capital intensity has insignificant influence on managerial effectiveness in the two clusters of countries, however, it undermines technical efficiency in HICs and scale efficiency in MICs. Gross national income per capita is inconsequential to scale enhancement. However, it contributes to technical efficiency in the two categories of countries and managerial performance in HICs. Efficiency performances in HICs and MICs are insensitive to the industry's concentration level. Inflation has insignificant influence on scale efficiency in HICs and MICs. Also, it drives technical efficiency and managerial performance in MICs, but the influence in HICs is immaterial. The joint impact of labour productivity and capital intensity is irrelevant to operational scale in HICs and MICs, however, it is negatively associated with technical efficiency and managerial effectiveness in MICs. This empirical study provides additional insight that managers in the industry and policy makers will find useful during strategy formulation and policy deliberations.

This study examines the cost efficiency of the banking industry in Canada. Utilizing 12 years of data (i.e., 2006 to 2017), and a two-stage data envelopment analysis (DEA), it provides insight on the determinants of the industry’s cost efficiency. It finds that the industry is cost inefficient, and that it could reduce costs by 11.52 percent. The cost inefficiency is due to technical and allocative inefficiencies, with technical inefficiency playing a dominant role. The technical efficiency decomposition shows that pure technical efficiency improved, but the scale efficiency deteriorated. The analysis of the determinants of cost efficiency reveals that deposit conversion into loans, high capitalization, and managerial tolerance for increase in administrative expense drive cost efficiency. On the other hand, market power and diversification diminish cost efficiency. In addition, the impact of profitability and credit risk are inconsequential to cost efficiency. This study contributes to literature by providing insights unique to Canada. Managers in the industry, policy makers, and regulators can point to these findings as empirical evidence supporting measures aimed at increasing the industry’s competitiveness and resilience.

This study examines banking industry stability in BRICS and G7 from the period 2005 to 2014. The results show that stability level in a prior period affects stability in the subsequent period. Also, the study reveals that competition improves stability, which validates the competition-stability proposition. Economic growth enhances stability in BRICS but not in G7. Inefficiency weakens stability in BRICS; however, its impact in G7 is insignificant. Profitability, capitalization, and inflation enhance stability in G7; however, they show no meaningful impacts in BRICS. These findings contribute to literature and policy discussion on banking industry stability JEL Codes: G21, G28, G32, L11

This study investigates the Canadian banking industry profitability and seeks to determine if there is evidence of market power hypothesis (MPH) and/or efficiency structure hypothesis (ESH) in the industry. Using GMM and data from 2006 to 2018, it finds no support for the structure-conduct-performance (SCP) component of MPH. However, evidence of relative market power (RMP) in the industry reflects partial support for MPH, implying that banks that offer differentiated products are able to exercise market power, increase market share, and achieve better profitability. The lack of support for X-efficiency (ESX) and scale efficiency (ESS), which are components of ESH, indicates no support for the ESH. The finding that QLH holds in the industry suggests the level of competition is inadequate and that managers in the industry exhibit suboptimal behaviour. Therefore, increasing the level of competition in the industry will stimulate managerial effectiveness. Findings relating to the control variables show that spread impedes profitability, whereas capitalization and the joint influence of spread and liquidity risk have facilitating effects. Credit risk is immaterial to profitability however, the effect of economic growth can be positive. This study provides a better understanding of the industry, which is important to managers, regulators, and policy makers. The robustness checks affirm the consistency of the findings and policy implications.

This study examines the volatility of stock market indices in high-income and middle-income economies. Relying on daily closing prices from January 4, 2005 to May 4, 2021 and using the Generalized Autoregressive Conditional Heteroscedastic (GARCH) model with one ARCH term and one GARCH term, the study finds evidence of long memory and mean reversion, suggesting that volatility persists but that it returns to its mean. In addition, the study finds that the latest news and prior information about volatility influence the volatility of indices, but prior information exerts greater influence. By providing a deeper understanding of stock market volatility in high-income and middle-income economies, this study contributes to the literature and provides investors, policymakers, and regulators additional insight.