Off-balane sheet activities and cost inefficiency in Taiwan's banks

Service Industries Journal

Volumn 25, Issue 7, 2005, Pages 925-944

  Lieu, Pang Tien ^a   Yeh, Tsai Lien ^b   Chiu, Yung Ho ^c  

^a NATIONAL TAIWAN UNIVERSITY OF SCIENCE AND TECHNOLOGY   (Taiwan)

^b MING CHUAN UNIVERSITY   (Taiwan)

^c SOOCHOW UNIVERSITY   (Taiwan)

Author keywords

[No Author keywords available]

Indexed keywords

BANKING; COST; FINANCIAL MARKET; SERVICE PROVISION;

ASIA; EASTERN HEMISPHERE; EURASIA; FAR EAST; TAIWAN; WORLD;

EID: 27544515487     PISSN: 02642069     EISSN: 17439507     Source Type: Journal    
DOI: 10.1080/02642060500134196     Document Type: Article

References (40)

1. Afriat, S.N. (1972) Efficiency estimation of production functions, International Economic Review, 13, pp.568-98.
2. Aigner, D.J., and Chu, S.F. (1968) On estimating the industry production function, International American Economic Review, 58, pp.826-39.
3. Aigner, D.J., Lovell, C.A.K. and Schmidt, P. (1977) Formulation and estimation of stochastic frontier production function models, Journal of Econometrics, 6(1), pp.21-37.
4. Altunbas, Y., Liu, M.H., Molyneux, P. and Seth, R. (2000) Efficiency and risk in Japanese banking, Journal of Banking & Finance, pp.1605-28.
5. Battese, G.E. and Coelli, T.J. (1988) Prediction of firm-level technical efficiencies with generalized frontier production function and panel data, Journal of Econometrics, 38, pp.387-99.
6. Battese, G.E. and Coelli, T.J. (1992) Frontier production functions, technical efficiency and panel data: with application to paddy farmers in India, Journal of Productivity Analysis, 3, pp.153-69.
7. Battese, G.E. and Coelli, T.J. (1995) A model for technical inefficiency effects in a stochastic frontier production function for panel data, Empirical Economics, 20, pp.325-32.
8. Berger, A.N. and Mester, L.J. (1997) Inside the black box: what explains difference in the efficiencies of financial institutions?, Journal of Banking & Finance, 21 (July), pp.895-947.
9. Boyd, J.H. and Gertler, M. (1994) Are banks dead? Or are the reports greatly exaggerated?, Federal Reserve Bank of Minneapolis Quarterly Review, Summer, pp.2-23.
10. Charnes, A., Cooper, W.W., Lewin, A.Y. and Seiford, L.M. (1995) Data Envelopment Analysis: Theory, Methodology and Applications, Boston: Kluwer Academic Publishers.
11. Charnes, A., Cooper, W.W. and Rhodes, E. (1978) Measuring the efficiency of decision making units, European Journal of Operational Research, 2(6), pp.429-44.
12. Chen, T.Y. and Yeh, T.L. (1998) A study of efficiency evaluation in Taiwan's banks, International Journal of Service Industry Management, 9(5), pp.402-15.
13. Chen, T.Y. and Yeh, T.L. (2000) A measurement of bank efficiency, ownership and productivity changes in Taiwan, The Service Industries Journal, 20(1), pp.95-109.
14. Clark, J.A. and Siems, T.F. (2002) X-efficiency in banking: looking beyond the balance sheet, Journal of Money, Credit, and Banking, 34(4), pp.987-1013.
15. Coelli, T.J. (1996) A guide to FRONTIER Version 4.1: a computer program for stochastic frontier production and cost function estimation. Centre for Efficiency and Productivity Analysis Working Paper, University of New England, Armidale.
16. Coelli, T.J., Rao, D.S.P. and Battese, G.E. (1998) An Introduction to Efficiency and Production Analysis, Boston: Kluwer Academic Publishers.
17. Cornwell, C., Schmidt, P. and Sickles, R.C. (1990) Production frontiers with cross-sectional and time-series variation in efficiency levels, Journal of Econometrics, 46, pp.185-200.
18. DeYoung, R. (1994) Fee-based service and cost efficiency in commercial banks. Federal Reserve Bank of Chicago, Proceedings: Conference of Bank Structure and Competition.
19. DeYoung, R. (1997) A diagnostic test for the distribution-free efficiency estimator: an example using U.S. commercial bank data, European Journal of Operational Research, 98, pp.243-9.
20. Farrell, M.J. (1957) The measurement of productive efficiency, Journal of Royal Statistical Society, Series A, 120(3), pp.254-81.
21. Fried, H.O., Lovell, C.A.K., Schmidt, S.S. and Yaisawarng, S. (2002) Accounting for environmental effects and statistical noise in data envelopment analysis, Journal of Productivity Analysis, 17, pp.157-74.
22. Gilligan, T.M. and Smirlock, M.L. (1984) An empirical study of joint production and scale economics in commercial banking, Journal of Banking and Finance, 8, pp.67-77.
23. Gilligan, T.M., Smirlock, M.L. and Marshall, W. (1984) Scale and scope econornies in the multi-product banking firm, Journal of Monetary Economics, 3, pp.393-405.
24. Huang, T.H., and Wang, M.H. (2001) Measuring scale and scope economies in multi-product banking - a stochastic frontier approach, Applied Economics Letters, 8, pp.159-62.
25. Jagtiani, J. and Khanthavit, A. (1996) Scale and scope economics at large banks, including off-balance sheet, products and regulatory effects (1984-1991), Journal of Banking & Finance, 20, pp.1271-87.
26. Jagtiani, J., Nathan, A. and Sick, G. (1995) Scale economics and cost complementarities in commercial banks' on-and off-balance-sheet activities, Journal of Banking & Finance, 19, pp.1175-89.
27. Jondrow, J., Lovell, C.A.K., Materov, I.S. and Schmidt, P. (1982) On estimation of technical inefficiency in the stochastic frontier production function model, Journal of Econometrics, 19, pp.233-8.
28. Lovell, C.A.K. (1994) Linear programming approaches to the measurement and analysis of productive efficiency, Top, 2, pp.175-248.
29. Meeuseu, W. and Van den Broeck, J. (1977) Efficiency estimation from Cobb-Douglas production functions with composed error, International Economics Review, 18(2), pp.435-44.
30. Nikiel, E.M., and Opiela, T.P. (2002) Customer type and bank efficiency in Poland: implications for emerging market banking, Contemporary Economics Policy, 20(3), pp.255-71.
31. Panzar, J.C. and Willig, R.D. (1977) Economies of scale in multi-output production, Quarterly Journal of Economics, Aug., pp.481-93.
32. Pitt, M.M. and Lee, L.-F. (1981) Measurement and sources of technical inefficiency in the Indonesian weaving industry, Journal of Development Economics, 9, pp.43-64.
33. Richmond, J. (1974) Estimating the efficiency of production, International Economic Review, 15, pp.515-21.
34. Roger, K.E. (1998) Nontraditional activities and the efficiency of US commercial banks, Journal of Banking & Finance, 22, pp.467-82.
35. Sathye, M. (2001) X-efficiency in Australian banking: an empirical investigation, Journal of Banking & Finance, 25, pp.613-30.
36. Schmidt, P. (1976) On the statistical estimation of parametric frontier production functions, Review of Economics and Statistics, 58, pp.238-9.
37. Schmidt, P. and Sickles, R.C. (1984) Production frontiers and panel data, Journal of Business and Economics Statistics, 2, pp.367-74.
38. Seiford, L.M. (1996) Data envelopment analysis: the evolution of the state of the art (1978-1995), Journal of Productivity Analysis, 7, pp.99-138.
39. Siems, T.F. and Clark, J.A. (1997) Rethinking bank efficiency and regulation: how off-balance-sheet activities make a difference, Federal Reverse Bank of Dallas Financial Industry Studies, Dec., pp.1-12.
40. Stiroh, K.J. (2000) How did bank holding companies prosper in the 1990s, Journal of Banking and Finance, 24, pp.1703-45.