The efficiency of financial institutions: A review and preview of research past, present and future

Berger, Allen N.; Hunter, William C.; Timme, Stephen G.

doi:10.1016/0378-4266(93)90030-h

Cited by 710 publications

(373 citation statements)

References 51 publications

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“…These findings seem to suggest that the more efficient banks use less leverage (more equity) compared to their peers. This result is aligned with the findings of Isik and Hassan, 2003;Staikouras and Wood, 2003;and Sufian and Habibullah, 2009. Result analysis either demonstrates a positive relationship between performance and bank size in conventional and Islamic banks which is similar to the results of researches in banking sector conducted by Berger, Hunter and Timme (1993), Miller and Noulas (1996), Girardone, Molyneux and Gardener (2004) …”

Section: Discussionsupporting

confidence: 87%

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The Relationship between Capital Structure and Performance in Gulf Countries Banks: A Comparative Study between Islamic Banks and Conventional Banks

Meero¹

2015

IJEF

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This paper mainly has two objectives: the first one is to identify the similarity of capital structure between Islamic and Conventional banks; Second objective is to detect the relationship between capital structure variables and performance of Islamic and Conventional Banks in Gulf Countries (GC). This investigation has been performed on a sample of 16 GC Banks (8 Islamic Banks and 8 Conventional Banks) for the period 2005-2014. ROE (return on equity) and ROA (return of asset) have been used as performance measures. Total debt to total assets, Equity to total assets, Debt to equity ratios have been used as capital structure measures. Size of the bank has been considered as dependent variable to identify its relationship with bank performance. Data collected were analyzed by using SPSS software. The results of the research indicate a similarity of capital structure of Islamic banks and Conventional banks in Gulf Countries. ROA as performance measurement has a significant negative relationship with financial leverage and a positive relationship with equity to assets ratio. This relationship is identified at Islamic banks, Conventional banks and all the banks of the sample. Bank size has a positive relationship with ROA and ROE as performance measures in Islamic and Conventional banks.

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Section: Discussionsupporting

confidence: 87%

“…Such literature includes the studies of Berger, Hunter and Timme (1993), Miller and Noulas (1996) Vol. 7, No.…”

Section: Firm Size and Performancementioning

confidence: 99%

The Relationship between Capital Structure and Performance in Gulf Countries Banks: A Comparative Study between Islamic Banks and Conventional Banks

Meero¹

2015

IJEF

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“…This method formulates a frontier for single input to multiple outputs or single output to multiple inputs scenarios, assuming a standard normal distribution with a mean of zero and modeling inefficiency using an asymmetric half-normal distribution (Berger, Hunter, & Timme, 1993). However, the half-normal distribution of inefficiency is relatively inflexible and assumes that most units are clustered near full efficiency.…”

Section: Parametric Methodsmentioning

confidence: 99%

Evaluating Canadian Bank Branch Operational Efficiency from Staff Allocation: A DEA Approach

Paradi¹,

Min²,

Yang

2014

MOS

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We examine the operational efficiency of one of the large Canadian banks' branches, which is primarily affected by its strategy of allocating staff and the service quality provided to customers. Two Data Envelopment Analysis (DEA) models are proposed in this research: (1) a staff allocation evaluation model pertinent to employee numbers and transaction volumes, and (2) a customer satisfaction benchmark model to check if the staff allocation scheme meets the expectations of the bank's management. Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) model results for different branch sizes and geographical regions are presented for analysis. The findings are compared to the bank's current models, validating the use of the proposed DEA models for evaluating operational efficiency from a staff allocation viewpoint in the banking industry. One of the interesting aspects of this work is that the requirement for best practice is not full efficiency but something less. The rationale is that if staff is pushed to the limit, they break and leave -the costs of training and integrating new staff is very high and service levels suffer.

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“…Each international hotel needs to know how to upgrade its operational efficiency and "productivity" in order to increase its competitiveness. Berger, Hunter and Timme (1993) suggested using DEA models as indicators in performance measurement because they could process multiple output and input items and maintain units invariance while the weight would not be affected by subjective factors. Morey and Dittman (1995) discovered that 34 of the 54 owner-managed hotels that were affiliated to internationally renowned chains had no efficiency (the efficiency value smaller than 1) and their average total efficiency was merely 0.89.…”

Section: Literature Reviewmentioning

confidence: 99%

An Analysis of the Operational and Management Efficiency of Five-Star Hotels in Taiwan

Lin¹,

Yang²

2014

IJEF

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In this study, data envelopment analysis and the Malmquist Index were applied to examine the operational efficiency and management efficiency of five-star hotels in Taiwan during the 2006-2011 period. Initially, a data envelopment analysis model was adopted to conduct a cross-section analysis of the management performance of each five-star hotel in Taiwan. Following this, the Malmquist Index was used to assess the total factor productivity and longitudinal cross-period development. Then, a management matrix was formed to show the corresponding positions of the decision-making units. The provided management information clearly presented the competitiveness status of each five-star hotel. The empirical results of this paper offer practical suggestions on how to adjust the production scale to achieve optimal scale.

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The efficiency of financial institutions: A review and preview of research past, present and future

Cited by 710 publications

References 51 publications

The Relationship between Capital Structure and Performance in Gulf Countries Banks: A Comparative Study between Islamic Banks and Conventional Banks

The Relationship between Capital Structure and Performance in Gulf Countries Banks: A Comparative Study between Islamic Banks and Conventional Banks

Evaluating Canadian Bank Branch Operational Efficiency from Staff Allocation: A DEA Approach

An Analysis of the Operational and Management Efficiency of Five-Star Hotels in Taiwan

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