The Czech transition banking sector instability: the role of operational cost management

Pruteanu-Podpiera, Anca; Podpiera, Jiří

doi:10.1007/s10644-008-9049-1

Cited by 12 publications

(4 citation statements)

References 16 publications

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“…Wheelock and Wilson are the first to use an efficiency measure in an early-warning model. Pruteanu-Podpiera and Podpiera (2008), using the 21 failures between 1994 and 2002 in Czechia, confirm earlier results that the risk of bank failure is closely related to cost efficiency. Because they lack price data, they are only able to measure technical efficiency.…”

Section: Review Of Methodology and Literaturesupporting

confidence: 86%

“…Using a parametric Fourier-flexible cost function, Kraft, Hofler, and Payne (2006) find that survivor banks are on average more cost efficient than failed banks in Croatia. Pruteanu-Podpiera and Podpiera (2008), using the 21 failures between 1994 and 2002 in Czechia, confirm earlier results that the risk of bank failure is closely related to cost efficiency. Isik and Hassan (2003a) report a notable productivity loss (À17%) in Turkish banking after the 1994 crisis, which is mainly attributable to technological regress (À10%) rather than efficiency decrease (À7%).…”

Section: Review Of Methodology and Literaturesupporting

confidence: 86%

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Bank Failures Under Managerial and Regulatory Inefficiency: Three Decades of Evidence From Turkey

Isik

Folkinshteyn

2017

J of Financial Research

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Drawing on a comprehensive data set from Turkey (1970–2003) and using both nonparametric (data envelopment analysis) and parametric (stochastic frontier analysis) frontier methods, we estimate 16 alternative efficiency measures to study their associations with the probability of bank failures in an emerging market setting. We find that failed banks severely underperform survived banks in all forms of efficiency and that their subpar performance deteriorates closer to failure, prosperous times and bloated scales tend to precede eventual banking fatalities, managerially induced (technical) inefficiencies dominate politically induced (allocative) inefficiencies in failed banks, and banks with new ownership and affiliation with other businesses are more likely to fail. The results also caution that liquidity, capital, and currency risks combined with poor management are a lethal mix ahead of crises.

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Section: Review Of Methodology and Literaturesupporting

confidence: 86%

Section: Review Of Methodology and Literaturesupporting

confidence: 86%

Bank Failures Under Managerial and Regulatory Inefficiency: Three Decades of Evidence From Turkey

Isik

Folkinshteyn

2017

J of Financial Research

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“…It is worth highlighting that the issue of efficiency of financial institutions has been widely studied in the relevant literature since the early 1990s (Berger & Humphrey, 1997). Given the increased frequency of financial crises, a great deal of literature has concentrated on exploring the relationship between efficiency and banking failure (Pruteanu-Podpiera & Podpiera, 2008; Reynaud, 2010; Wheelock & Wilson, 1995). Regarding German banks, for instance, Koetter and Porath (2007) have documented that an increase in efficiency helps greatly in reducing the likelihood of default.…”

Section: Literature Reviewmentioning

confidence: 99%

How to Choose a Nonparametric Frontier Model? Technical Efficiency of Turkish Banks Assessing Global

Bannour

Sghaier

Nurunnabi

2018

Global Business Review

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This article aims to address current gaps in the literature on banking efficiency using the data envelopment analysis (DEA) model. The study assesses the technical efficiency of the Turkish banking sector in the period spanning from 1990 to 2010 in-line with DEA model. In comparison with the DEA model, the CCR model (developed by Charnes, Cooper & Rhodes, European Journal of Operational Research, 1978, 2(6): 429–444) does not need model assumptions on input/output orientation. It also avoids the dilemma about the choice of input/output indicators. The comparison analysis of this study reveals that the CCR model yields more significant efficiency results than the BCC model (developed by Banker, Charnes & Cooper, Management Science, 1984, 30(9): 1078–1092). This study provides important contribution to the current empirical research on banking efficiency. The empirical results of the study reveal a steady increase in global efficiency of the Turkish banking sector over the past two decades. The future research could focus on the behavioural aspects of bank efficiency (e.g., managerial practices). The study also offers managerial implications.

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“…V kontextu české odborné literatury byla stochastická hranice produkčních možností v nedávné době použity i pro měření efektivity a chování bank (Baruník a Soták, 2010;Pruteanu-Podpiera a Podpiera, 2008;Podpiera a Weill, 2010), či vliv zahraničního vlastnictví prostřednictvím FDI na fi remní efektivitu (Hanousek et al, 2012). Související je také analýza obalu dat aplikovaná pro měření efektivity nemocnic (Dlouhý et al, 2007).…”

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Efficiency of European Firms

Hanousek¹,

Kočenda²,

Shamshur³

2014

Politicka ekonomie

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Určit co ovlivňuje efektivitu fi rem je ústřední otázkou v oblastech ekonomie i podnikání. Odborná literatura ukazuje, že hlavními faktory určujícími efektivitu fi rem jsou vlastnická a kapitálová struktura (Jensen a Meckling, 1976). Z hlediska vlastnické struktury se ukazuje, že koncentrované vlastnictví má důležité důsledky pro výkon-nost podniku (viz Gugler, 2003 a Sánchez-Ballesta a García-Meca, 2007 pro podrobný přehled literatury). Teoreticky je souvislost mezi vlastnickou strukturu a výkon-ností podniku obvykle studována z pohledu teorie zastoupení (agency theory), která modeluje konfl ikt zájmů mezi vlastníky a manažery.1 Dalším z důležitých faktorů je kapitálová struktura fi rmy. Jak argumentuje Jensen (1986), na základě teorie volných peněžních toků, by se fi rmy využívající především úvěry měly zapojovat do jednoznačně ziskových projektů, což by mělo mít na efektivitu těchto fi rem pozitivní vliv. Dále, na základě teorie x-neefektivity (Leibenstein, 1966) by vyšší konkurence měla vést také k vyšší efektivitě fi rmy. Mezi další faktory patří také stáří a velikost podniků, které jsou rovněž často spojovány s jejich efektivitou.Existující empirická literatura pojednávající o vztahu mezi kapitálovou strukturou, vlastnickou strukturou, výkonností a efektivitou fi rem není jednotná (Arocena

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The Czech transition banking sector instability: the role of operational cost management

Abstract: Bank failures, Management, Cost efficiency, Transition economy, G2, C1,

Cited by 12 publications

References 16 publications

Bank Failures Under Managerial and Regulatory Inefficiency: Three Decades of Evidence From Turkey

Bank Failures Under Managerial and Regulatory Inefficiency: Three Decades of Evidence From Turkey

How to Choose a Nonparametric Frontier Model? Technical Efficiency of Turkish Banks Assessing Global

Efficiency of European Firms

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