The determinants of cost efficiency in cooperative financial institutions: Australian evidence

Esho, Neil

doi:10.1016/s0378-4266(00)00104-7

Cited by 65 publications

(64 citation statements)

References 15 publications

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“…For these reasons, cost minimization rather than profit maximization is often the focus in the studies of efficiency of co-operative banks (e.g. Esho 2001). On the other hand, in order to be able to serve customers efficiently the co-operative banks should also be able to show a healthy profit.…”

Section: The Estimation Equation For Our Fixed Effects Specification Ismentioning

confidence: 99%

The effects of general and firm-specific training on wages and performance: evidence from banking

Jones

Kalmi

Kauhanen

2011

Oxford Economic Papers

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By using new panel data for Finnish banks we study the impact of training on wages and performance. To the best of our knowledge, ours is the first paper to compare explicitly the effects of general and firm-specific workplace training on outcomes for both employees and firms. Unlike much existing literature, we find stronger evidence that training improves worker outcomes rather than organizational performance. Depending upon specification, the estimated wage elasticity with respect to training is in the range of 3-7%, whereas the performance effects vary widely depending on the measures of training intensity. The other key finding is that general training is associated with higher wage and performance effects than is firm-specific training. 2 I IntroductionTwo important issues are raised in most economic studies of training. First, does training increase efficiency and by how much? Second, who reaps the gains from training? In addressing these issues, the standard (Beckerian) theory concludes that in competitive markets, employers will not pay for general training. By definition, general training increases employee productivity by the same amount in the current workplace and elsewhere. If employees participate in general training, their employers have to bid up employees' wages reflecting the productivity increases due to training. If they fail to do so, other potential employers can "poach" these workers and free-ride in training expenses. Hence, according to this theory, in competitive labour markets, employers would finance training only if there are some specific elements in it. By contrast, the early empirical evidence on training revealed that employer-provided training is mostly general in nature and that, nevertheless, employers paid the costs of training (e.g. Lynch 1992; Spletzer, 1998, 1999;Barron et al. 1999).To explain this inconsistency between theory and empirics, many subsequent theorists point to imperfections in labour markets. It is argued (e.g. Acemoglu and Pischke, 1999;Manning, 2003) that search frictions, certain labour market institutions (e.g. unions, minimum wages), imperfect competition in small labour markets (Stevens 1994), or asymmetric information in training among current and potential employers may lead to situations where employees capture only a fraction of the productivity gains.These models also imply that wages do not equal marginal revenue product, and this has motivated recent literature that studies the impact of training on productivity and wages 1 .Consistent with theory grounded in imperfect labour markets, more recent empirical 1 For theoretical literature see e.g. Acemoglu and Pischke (1999) and Booth and Zoega (2004). 3 evidence on the impact of training on wages and productivity finds that there is a wedge between wages and productivity effects and that employees and employers seem to share the benefits from training. This applies both to industry levels studies (Conti 2005;Dearden et al. 2006) and firm level studies (e.g. Ballot et al. 2006). However, w...

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Section: The Estimation Equation For Our Fixed Effects Specification Ismentioning

confidence: 99%

The effects of general and firm-specific training on wages and performance: evidence from banking

Jones

Kalmi

Kauhanen

2011

Oxford Economic Papers

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“…Esho, 2001). By using panel data, the WITHIN model does not require distributional assumptions on the inefficiency term and the random disturbance.…”

Section: Robustness Checksmentioning

confidence: 99%

Convergence in banking efficiency across European countries

Weill

2009

Journal of International Financial Markets, Institutions and Mo

119

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JEL classification: G21 D21 F36 Keywords:Banking Convergence Efficiency European integration Stochastic frontier approach a b s t r a c t Our paper aims to check whether financial integration has taken place on the EU banking markets, by investigating the convergence in banking efficiency for European countries between 1994 and 2005. We provide evidence of cross-country differences in cost efficiency and of an improvement in cost efficiency for all EU countries. and convergence tests for panel data show a process in convergence in cost efficiency between EU countries. Robustness checks with alternative specifications confirm these findings. These results support the view that financial integration has taken place on the EU banking markets in the recent years.

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“…This is because each country has its own market characteristics and regulations (Focarelli, Panetta, and Salleo, 2002;Vander Vennet, 2002). In general, no strong evidence on the benefit of consolidation is found in the US, while in Europe the conclusions seem to be mixed (Carbo and Humphrey, 2004;Cavallo and Rossi, 2001;Diaz, Garcia, and Sanfilippo, 2004;Esho, 2001;Sathye, 2001). …”

Section: Literature Reviewmentioning

confidence: 99%

Banking Consolidation in Nigeria, 2000–2010

Barros

Caporale

2012

Journal of African Business

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This study examines the Nigerian banking consolidation process using a dynamic panel for the period 2000-2010. The Arellano and Bond (1991) dynamic GMM approach is adopted to estimate a cost function taking into account the possible endogeneity of the covariates. The main finding is that the Nigerian banking sector has benefited from the consolidation process, and specifically that foreign ownership, mergers and acquisitions and bank size decrease costs.Directions for future research are also discussed.

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The determinants of cost efficiency in cooperative financial institutions: Australian evidence

Cited by 65 publications

References 15 publications

The effects of general and firm-specific training on wages and performance: evidence from banking

The effects of general and firm-specific training on wages and performance: evidence from banking

Convergence in banking efficiency across European countries

Banking Consolidation in Nigeria, 2000–2010

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