Cooperative bank efficiency in Japan: a parametric distance function analysis

Glass, J. Colin; McKillop, Donal; Quinn, Barry; Wilson, John O. S.

doi:10.1080/1351847x.2012.698993

Cited by 39 publications

(15 citation statements)

References 39 publications

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“…Cuesta and Zofío (2005) using the translog hyperbolic distance function estimated the efficiency of Spanish savings banks. Glass et al (2014) employed the enhanced hyperbolic distance function to measure the relative performance of Japanese cooperative banks modelling non-performing loans as an undesirable output. Suta et al (2010) using the hyperbolic distance function approach, calculated the environmental technical efficiency scores of selected EU farms (Bulgaria, Romania and Poland).…”

Section: Literature Reviewmentioning

confidence: 99%

Environmental Efficiency and Pollution Costs of Nitrogen Surplus in Dairy Farms: A Parametric Hyperbolic Technology Distance Function Approach

Adenuga

Davis

Hutchinson

et al. 2019

Environ Resource Econ

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Negative externalities such as nitrogen (N) surplus that accompany dairy production activities are not usually accounted for in the market place since they are not costed. Using a parametric hyperbolic environmental technology distance function approach, we estimate the environmental efficiency and farm-specific abatement costs (shadow price) of nitrogen surplus in dairy farms on the island of Ireland (Northern Ireland and the Republic of Ireland). The methodology, unlike previous approaches (output/input distance functions), allows for asymmetric treatments of production outputs (desirable and undesirable outputs). We also analyse the farm level nitrogen pollution costs ratio and its determinants. The results of our analyses showed that the average environmental technical efficiency estimates for the Republic of Ireland and Northern Ireland are 0.89 and 0.92 and the mean abatement costs per kg of N surplus is €4.02 and €6.2 respectively. We found a reasonable degree of variation in the spectrum of abatement costs across the dairy farms with a relative increase observed over the years.

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Section: Literature Reviewmentioning

confidence: 99%

Environmental Efficiency and Pollution Costs of Nitrogen Surplus in Dairy Farms: A Parametric Hyperbolic Technology Distance Function Approach

Adenuga

Davis

Hutchinson

et al. 2019

Environ Resource Econ

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“…Evaluating technical efficiency of Japanese credit cooperatives, Glass et al. () also find a presence of technical progress between 1998 and 2009. Technical progress also existed for all banks in the early 1990s, although different productivity measures yield different timing for its presence (Fukuyama, ).…”

Section: Resultsmentioning

confidence: 98%

What is the impact of problem loans on Japanese bank productivity growth?

Mamatzakis

Matoušek

2019

Financial Market

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This paper examines for the first time the impact of problem loans on Japanese productivity growth. We exploit a new data set of Japanese problem loans classified into two categories: bankrupt and restructured loans. We opt for a novel and flexible productivity growth decomposition that allows to measure the direct impact of these problem loans on productivity growth. The results reveal that Japanese bank productivity growth was severely constrained by bankrupt and restructured loans early in 2000s, whilst some persistence of the negative impact of problem loans on productivity growth is observed in the late 2000s. Thereafter, there is only some partial recovery in the productivity growth from 2012 to 2015. Further, we also perform cluster analysis to examine convergence or divergence across regions and over time. We observe limited convergence, though Regional Banks seem to form clusters in some regions.

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“…7, 12 we follow the widely used intermediation approach (Sealey and Lindley, 1977). We characterise three proxies for inputs: x 1 interest expenses (Glass et al, 2014;Liu and Tone, 2008), x 2 fixed assets (Assaf et al, 2011;Fukuyama and Weber, 2008), and x 3 general and administrative expenses 13 (Drake and Hall, 2003;Liu and Tone, 2008). We define our outputs in line with Barros et al (2009), Assaf et al 2011, Barros et al (2012) as y 1 net loans and bills discounted, and y 2 net earning assets which include net investments, securities, and other earning assets.…”

Section: Datamentioning

confidence: 99%

“…(ROA), and net interest margin (NIM) (Glass et al, 2014). NIM is defined by the difference between interest incomes and interest expenses to total interest-earning assets (Nguyen, 2012).…”

Section: Datamentioning

confidence: 99%

What is the impact of bankrupt and restructured loans on Japanese bank efficiency?

Mamatzakis

Matoušek

2016

Journal of Banking & Finance

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The Japanese banking system provides a distinctive platform for the examination of the long-lasting effect of problem loans on efficiency. We measure technical efficiency by modifying a translog enhanced hyperbolic distance function with two undesirable outputs, identified as problem loans and problem other earning assets. Our unique database allows us to distinguish between bankrupt and restructured loans to investigate the underlying causality between these loans and efficiency. From the flexible panel vector autoregression specification, primary results reveal that bankrupt loans have a positive impact on efficiency related to the ''moral hazard, skimping'' hypothesis, with the causality originating from bankrupt loans. In contrast, findings for the relationship between restructured loans and efficiency support the ''bad luck'' hypothesis.

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Cooperative bank efficiency in Japan: a parametric distance function analysis

Cited by 39 publications

References 39 publications

Environmental Efficiency and Pollution Costs of Nitrogen Surplus in Dairy Farms: A Parametric Hyperbolic Technology Distance Function Approach

Environmental Efficiency and Pollution Costs of Nitrogen Surplus in Dairy Farms: A Parametric Hyperbolic Technology Distance Function Approach

What is the impact of problem loans on Japanese bank productivity growth?

What is the impact of bankrupt and restructured loans on Japanese bank efficiency?

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