Ownership Structure and Bank Efficiency in the Asia Pacific Region

Barry, Thierno; Dacanay, Santos Jose Iii O.; Tarazi, Amine; Lepetit, Lætitia

doi:10.2139/ssrn.1331318

Cited by 17 publications

(20 citation statements)

References 4 publications

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“…However, a few studies find that state-owned banks are more efficient (Gardener et al 2011;Wang et al 2014;Dong et al 2014;Berger et al 2009) than other types of banks and are related to higher stockholder value (Hossain et al 2013). Other studies (Barry et al 2008), however, find no significant difference between state-owned banks and privately-owned banks. Micco et al (2007) argues that state-owned banks in developing countries have higher costs and lower profits, while those in developed countries have no significant difference in costs and profits.…”

Section: State Ownership In the Banking Industrymentioning

confidence: 97%

“…Empirical evidence revealed the better performance of China's four largest state-owned banks (Wang et al 2014;Dong et al 2014; Tan and Anchor 2017) over other banks in China. After estimating bank efficiency in Hong Kong, Indonesia, Korea, Malaysia, the Philippines, and Thailand, Barry et al (2008) found that state-owned banks were not significantly different from privately-owned banks.…”

Section: State Ownership In the Banking Industrymentioning

confidence: 98%

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Role of Bank Regulation on Bank Performance: Evidence from Asia-Pacific Commercial Banks

Yang

Gan

2019

JRFM

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The banking industry is an essential financial intermediary, thus the efficient operation of banks is vital for economic development and social welfare. However, the 2008 global financial crisis triggered a reconsideration of the banking systems, as well as the role of government intervention. The literature has paid little attention to the banking industry in the Asia-Pacific region in the context of bank efficiency. This study employs double bootstrap data envelopment analysis to measure bank efficiency and examine the relationship between regulation, supervision, and state ownership in commercial banks in the Asia-Pacific region for the period 2005 to 2014. Our results indicate that excluding off-balance sheet activities in efficiency estimations lead to underestimating of the pure technical efficiency, while overestimating the scale efficiency of banks in the Asia-Pacific region. Cross-country comparisons reveal that Australian banks exhibit the highest levels of technical efficiency, while Indonesian banks exhibit the lowest average. Our bootstrap regression results suggest that bank regulation and supervision are positively related to bank technical efficiency, while state ownership is not significantly related to bank efficiency. Furthermore, our findings show that tighter regulation and supervision are significantly related to higher efficiency for small and large-sized banks.

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Section: State Ownership In the Banking Industrymentioning

confidence: 97%

Section: State Ownership In the Banking Industrymentioning

confidence: 98%

Role of Bank Regulation on Bank Performance: Evidence from Asia-Pacific Commercial Banks

Yang

Gan

2019

JRFM

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“…Our sample is consisting of 20 domestic commercial banks (4 state-owned banks and 16 private-owned banks) during the period from 2004 to 2009, totaling 120 observations. Berger & Mester (1997) concur with De Young (1997) that a six-year period reasonably adequate of not considered as too short or too long period (in Barry et al, 2008) Berger & Humphrey (1997) commented on the difficulty of variable selection in performance of banks using DEA since there is no perfect approach on the explicit definition and measurement of banks" input and outputs. The primary approaches in measureing banks" input and outputs are the production approach and intermediation approach (Barr, 2002;Galagedera & Edirisuriya, 2004;Hermes & Vu, 2008;Saad & Mousawi, 2009).…”

Section: Data and Variablesmentioning

confidence: 99%

Technical Efficiency of Indonesian Commercial Banks: An Application of Two-Stage DEA

Soetanto¹,

Ricky²

2012

jmk

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ABSTRAKPenelitian ini mempergunakan metode DEA (Data Envelopment Analysis) untuk mengetahui efisiensi teknis (technical efficiency) bank-bank komersial di Indonesia. Penelitian ini mengambil data pada tahun 2004-2009 dengan menggunakan pendekatan intermediasi (intermediation approach). Hasil-hasil penelitian menunjukkan bahwa bank-bank komersial di Indonesia telah mengalami peningkatan dalam efisiensi teknis (technical efficiency), rata-rata sebesar 10.5%. Lebih lanjut, hasil studi juga memberikan konfirmasi jika perbankan nasional mengalami ketidakefisienan secara skala (scale inefficiency) yang lebih besar dibandingkan dengan ketidakefisienan secara teknis murni (pure technical efficiency). Dilihat dari kepemilikannya, bank-bank pemerintah menunjukkan efisiensi yang sempurna selama masa studi dibandingkan dengan bank-bank swasta. Hasil terakhir yang didapat dari regresi Tobit menunjukkan bahwa skala aset dan resiko likuiditas dapat membantu peningkatan efisiensi bank, sedangkan kondisi yang sebaliknya terjadi untuk profitabilitas. ABSTRACTThis paper uses data envelopment analysis (DEA) to investigate the technical efficiency of the Indonesian commercial banks over the period 2004-2009 using intermediation approach. The analysis is conducted based on common frontier of duration of study and ownership of the banks, namely state-owned banks and private banks. Then Tobit regression model is used to examine the influence of internal factors as bank characteristics to efficiency scores. The results of DEA show that Indonesian commercial banks could improve their technical efficiency by 10.5% on average and the scale inefficiency is dominating over pure technical inefficiency. The commercial state-owned banks are showing perfect efficiency during the period of study, and proven to be more efficient compared to the commercial private banks. Finally Tobit regression is revealing that higher asset scale and liquidity risk increase the efficiency of the bank, while the profitability is on the contrary.

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“…There are many literary works that combine the use of DEA and Tobit Regression (e.g. Barry et al 2010;Berger and Humphrey, 1990;Wang et al 2006;Pande and Patel, 2013). In the real estate industry, Anderson et al(1998) use DEA and Tobit Regression to measure the efficiency levels of residential real estate brokerage firms.…”

Section: Tobit Regression Modelmentioning

confidence: 99%

The Efficiency Analysis of Singapore Real Estate Investment Trusts

Chiang¹,

Tsaih²,

Hsiao³

2016

EJBM

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Since the REIT industry is relatively new in Singapore, the objective of this research is to examine the operation efficiency among firms in the industry through the method of Data Envelopment Analysis (DEA). In addition, the method of Tobit regression is applied to investigate the impact factors on efficiency. The results are as follows. First, none of 14 firms analyzed performs relatively efficiently based on the average efficiency scores over the sample periods of 2007 to first quarter of 2015. Nevertheless, it is found that First REIT and Suntec REIT are the most efficient and least efficient REITs respectively. Second, ROA is positively correlated to efficiency scores while the negative relationship is found with the debt ratio. Third, regarding property-type, retail REITSs perform better than commercial ones on average. However, the most efficient group is "others" which consists of one hospitality/residential REITs, one healthcare REITs, and three industrial REITs. Fourth, geographical diversification may not affect REIT's efficiency. Meanwhile, REITs holding more properties overseas perform better than their counterparts on average. Last, in regards to size, small-size REITs significantly perform better in efficiency than those in other categories. Especially, medium-size and largesize REITs do not have significant differences on average in efficiency.

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Ownership Structure and Bank Efficiency in the Asia Pacific Region

Cited by 17 publications

References 4 publications

Role of Bank Regulation on Bank Performance: Evidence from Asia-Pacific Commercial Banks

Role of Bank Regulation on Bank Performance: Evidence from Asia-Pacific Commercial Banks

Technical Efficiency of Indonesian Commercial Banks: An Application of Two-Stage DEA

The Efficiency Analysis of Singapore Real Estate Investment Trusts

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