First Financial Restructuring and operating efficiency: Evidence from Taiwanese commercial banks

Journal of Banking and Finance

Volumn 34, Issue 7, 2010, Pages 1461-1471

  Hsiao, Hsing Chin ^a   Chang, Hsihui ^b   Cianci, Anna M ^b   Huang, Li Hua ^a  

^a NATIONAL TAIPEI UNIVERSITY OF BUSINESS   (Taiwan)

^b DREXEL UNIVERSITY   (United States)

Author keywords

Commercial banks; Data envelopment analysis (DEA); First Financial Restructuring (FFR); Operating efficiency

Indexed keywords

EID: 77952675328     PISSN: 03784266     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbankfin.2010.01.013     Document Type: Article

References (54)

1. Altunbas Y., Liu M., Molyneux P., Seth R. Efficiency and risk in Japanese banking. Journal of Banking and Finance 2000, 24:1602-1628.
2. Anandarajan A., Hasan I., Lozano-Vivas A. Loan loss provision decisions: An empirical analysis of the Spanish depository institutions. Journal of International Accounting, Auditing and Taxation 2005, 14:55-77.
3. Banker R.D. Maximum likelihood, consistency and data envelopment analysis: A statistical foundation. Management Science 1993, 39:1265-1273.
4. Banker R.D., Charnes A., Cooper W.W. Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science 1984, 30:1078-1092.
5. Banker R.D., Natarajan R. Evaluating contextual variables affecting productivity using data envelopment analysis. Operations Research 2008, 56:48-58.
6. Banking Act, 2003. Modified Banking Act, 4/29/2003. Taiwan.
7. Barth J.R., Caprio G.Jr., Levine R. Bank regulation and supervision: What works best?. Journal of Financial Intermediation 2004, 13:205-248.
8. Belsley D.A., Kuh E., Welsch R.E. Regression Diagnostics 1980, John Wiley & Sons, NY.
9. Berg S.A., Forsund F.R., Finn R., Jansen E.S. Malmquist indices of productivity growth during the deregulation of Norwegian banking, 1980-1989. The Scandinavian Journal of Economics 1992, 94:S211-S228.
10. Berger A.N. International comparisons of banking efficiency. A Companion to International Business Finance 2004, Blackwell Publishing, Malden, MA. R. Aggarwal (Ed.).
11. Berger A.N., DeYoung R. Problem loans and cost efficiency in commercial banks. Journal of Banking and Finance 1997, 21:849-870.
12. Berger A.N., Humphrey D. Efficiency of financial institutions: International survey and directions for future research. European Journal of Operational Research 1997, 98:175-212.
13. Berger A.N., Mester L.J. Explaining the dramatic changes in performance of US banks: Technological change, deregulation, and dynamic changes in competition. Journal of Financial Intermediation 2003, 12:57-95.
14. Brissimis S.N., Delis M.D., Papankiolaou N.I. Exploring the nexus between banking sector reform and performance: Evidence from newly acceded EU countries. Journal of Banking and Finance 2008, 32:2674-2683.
15. Canhoto A., Dermine J. A note on banking efficiency in Portugal, New and Old Banks. Journal of Banking and Finance 2003, 27:2087-2098.
16. Chang H., Chang W., Das S., Li S. Health care regulation and the operating efficiency of hospitals: Evidence from Taiwan. Journal of Accounting and Public Policy 2004, 23:483-510.
17. Charnes A., Cooper W.W., Rhodes E. Measuring the efficiency of decision making units. European Journal of Operational Research 1978, 2:429-444.
18. Cook W.D., Seiford L.M., Zhu J. Models for performance benchmarking: Measuring the effect of e-business activities on banking performance. Omega 2004, 32:313-322.
19. Das A. Risk and productivity change of public sector banks. Economic and Political Weekly 2002, 37:437-447.
20. Das A., Ghosh S. Financial deregulation and efficiency: An empirical analysis of Indian banks during the post reform period. Review of Financial Economics 2006, 15:193-221.
21. Denizer, C., 1997. The effects of financial liberalization and new bank entry on market structure and competition in turkey. Policy Research Working Paper 1839, World Bank, Washington, DC.
22. Denizer C.A., Dinc M., Tarimcillar M. Financial liberalization and banking efficiency: Evidence from Turkey. Journal of Productivity Analysis 2007, 27:177-195.
23. Elyasiani E., Mehdian S. The comparative efficiency performance of small and large US commercial banks in the pre- and post-deregulation eras. Applied Economics 1995, 27:1069-1079.
24. Executive Yuan, 2006. Recent financial reforms in Chinese Taipei APEC. September 13, 2006.
25. Financial Supervisory Commission, Executive Yuan, Taiwan, 2005. Financial restructuring.
26. Fries S., Taci A. Cost efficiency of banks in transition: Evidence from 289 banks in 15 post-communist countries. Journal of Banking and Finance 2005, 29:55-81.
27. Fu X., Heffernan S. The effects of reform on China's bank structure and performance. Journal of Banking and Finance 2009, 33:39-52.
28. Fukuyama H., Weber W.L. Estimating output allocative efficiency and productivity change: Application to Japanese banks. European Journal of Operational Research 2002, 137:177-190.
29. Halkos G.E., Salamouris D.S. Efficiency measurement of the Greek commercial banks with the use of financial ratios: A data envelopment analysis approach. Management Accounting Research 2004, 15:201-224.
30. Harker P.T., Zenios S.A. What drives the performance of financial institutions?. Performance of Financial Institutions 2000, Cambridge University Press, New York, NY. P.T. Harker, S.A. Zenios (Eds.).
31. Hausman J. Specification tests in econometrics. Econometrica 1978, 46:1251-1271.
32. Isik I., Hassan M.K. Technical, scale and allocative efficiencies of the Turkish banking industry. Journal of Banking and Finance 2002, 26:719-766.
33. Isik I., Hassan M.K. Financial deregulation and total factor productivity change: An empirical study of Turkish commercial banks. Journal of Banking and Finance 2003, 27:1455-1485.
34. Kao C., Liu S. Predicting bank performance with financial forecasts: A case of Taiwan commercial banks. Journal of Banking and Finance 2004, 28:2353-2368.
35. Koutsomanoli-Filippaki A., Margaritis D., Staikouras C. Efficiency and productivity growth in the banking industry of Central and Eastern Europe. Journal of Banking and Finance 2009, 33:557-567.
36. Kumbhakar S., Sarkar S. Deregulation, ownership, and productivity growth in the banking industry: Evidence from India. Journal of Money, Credit, and Banking 2003, 35:403-424.
37. Kwan S.H. Operating performance of banks among Asian Economies: An international and time series comparison. Journal of Banking and Finance 2003, 27:471-489.
38. Mensah Y.M., Li S. Measuring production efficiency in a non-for-profit setting: An extension. The Accounting Review 1993, 68:66-88.
39. Moyer S. Capital adequacy ratio regulations and accounting choices in commercial banks. Journal of Accounting and Economics 1990, 13(2):123-154.
40. Niswander F., Swanson E.P. Loan, security, and dividend choices by individual (unconsolidated) public and private commercial banks. Journal of Accounting and Public Policy 2000, 19:201-235.
41. Park K.H., Weber W.L. A note of efficiency and productivity growth in the Korean banking industry, 1992-2002. Journal of Banking and Finance 2006, 30:2371-2386.
42. Pastor J.M. Credit risk and efficiency in the European banking system: A three-stage analysis. Applied Financial Economics 2002, 12:895-911.
43. Ray S.C., Desli E. Productivity growth, technical progress, and efficiency change in industrialized countries: Comment. The American Economic Review 1997, 87:1033-1039.
44. Sarkar J., Bhaumik S. Deregulation and the limits to banking market competition: Some insights from India. International Journal of Development Bank 1998, 16:29-42.
45. Sherman H.D., Zhu J. Benchmarking with quality-adjusted DEA (Q-DEA) to seek lower-cost high-quality service: Evidence from a US bank application. Annals of Operations Research 2005, 145:301-319.
46. Sturm J.E., Williams B. Foreign bank entry, deregulation and bank efficiency: Lessons from the Australian experience. Journal of Banking and Finance 2004, 28:1775-1799.
47. Thomson J.B. Predicting bank failures in the 1980s. Economic Review-Federal Reserve Bank of Cleveland 1991, 27:9-20.
48. Vives X. Competition in the changing world of banking. Oxford Review of Economic Policy 2001, 17(4):535-547.
49. White H. A heteroskedasticity-consistent covariance matrix estimator and direct test for heteroskedasticity. Econometrica 1980, 4:817-838.
50. Williams J., Nguyen N. Financial liberalization, crisis, and restructuring: a comparative study of bank performance and bank governance in South East Asia. Journal of Banking and Finance 2005, 29:2119-2154.
51. Yeh Q.J. The application of data envelopment analysis in conjunction with financial ratios for bank performance evaluation. Journal of the Operational Research Society 1996, 47:980-988.
52. Yildirim H.S., Philippatos G.C. Restructuring, consolidation and competition in Latin American banking markets. Journal of Banking and Finance 2007, 31:629-639.
53. Zaim O. The effect of financial liberalization on the efficiency of Turkish commercial banks. Applied Financial Economics 1995, 5:257-264.
54. Zhao T., Casu B., Ferrari A. The impact of regulatory reforms on cost structure, ownership and competition in Indian banking. Journal of Banking and Finance 2010, 34:246-254.