Banks total factor productivity change in a developing economy: Does ownership and origins matter?

Journal of Asian Economics

Volumn 22, Issue 1, 2011, Pages 84-98

  Sufian, Fadzlan ^a,b  

^a Kuala Lumpur City Centre   (Malaysia)

^b UNIVERSITY PUTRA MALAYSIA   (Malaysia)

Author keywords

Bank ownership; Malaysia; Malmquist productivity index; Panel regression analysis; Productivity change

Indexed keywords

EID: 78650238972     PISSN: 10490078     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.asieco.2010.07.007     Document Type: Article

References (69)

1. Akhigbe A., McNulty J.E. Profit efficiency sources and differences among small and large U.S. commercial banks. Journal of Economics and Finance 2005, 29(3):289-299.
2. Altunbas Y., Evans L., Molyneux P. Bank ownership and efficiency. Journal of Money, Credit and Banking 2001, 33(4):926-954.
3. Aly H.Y., Grabowski R., Pasurka C., Rangan N. Technical, scale and allocative efficiencies in U.S. banking: An empirical investigation. Review of Economics and Statistics 1990, 72(2):211-218.
4. Ataullah A., Cockerill T., Le H. Financial liberalization and bank efficiency: A comparative analysis of India and Pakistan. Applied Economics 2004, 36(17):1915-1924.
5. Barr R.S., Killgo K.A., Siems T.F., Zimmel S.A. Evaluating the productive efficiency and performance of U.S. commercial banks. Managerial Finance 2002, 28(8):3-25.
6. Berger A.N. International comparisons of banking efficiency. Financial Markets, Institutions and Instruments 2007, 16(3):119-144.
7. Berger A.N., Bonime S., Goldberg L.G., White L. The dynamics of market entry: The effects of mergers and acquisitions on entry in the banking system. Journal of Business 2004, 77(4):797-834.
8. Berger A.N., Clarke G.R.G., Cull R., Klapper L., Udell G.F. Corporate governance and bank performance: A joint analysis of the static, selection and dynamic effects of domestic, foreign and state ownership. Journal of Banking and Finance 2005, 29(8/9):2179-2221.
9. Berger A.N., DeYoung R., Genay H., Udell G.F. Globalization, of financial institutions: Evidence from cross border banking performance. Brookings-Wharton Papers on Financial Services 2000, 3:23-158.
10. Berger A.N., Humphrey D.B. Measurement and efficiency issues in commercial banking. Measurement issues in the service sectors 1992, 245-279. National Bureau of Economic Research: University of Chicago Press. Z. Griliches (Ed.).
11. Berger A.N., Humphrey D.B. Efficiency of financial institutions: International survey and directions for future research. European Journal of Operational Research 1997, 98(2):175-212.
12. Berger A.N, Hunter W.C., Timme S.G. The efficiency of financial institutions: A review and preview of research past, present and future. Journal of Banking and Finance 1993, 17(2-3):221-249.
13. Berger A.N., Mester L.J. Inside the black box: What determine differences in the efficiency of financial institutions?. Journal of Banking and Finance 1997, 21(7):895-947.
14. Berger A.N., Mester L.J. Explaining the dramatic changes in performance of U.S. banks: Technological change, deregulation and dynamic changes in competition. Journal of Financial Intermediation 2003, 12(1):57-95.
15. Bonin J.P., Hasan I., Wachtel P. Bank performance, efficiency and ownership in transition countries. Journal of Banking and Finance 2005, 29(1):31-53.
16. Boubakri N., Cosset J.C., Fischer K., Guedhami O. Privatization and bank performance in developing countries. Journal of Banking and Finance 2005, 29(8/9):2015-2041.
17. Caves R. International corporations: The Industrial economics of foreign investment. Economica 1971, 38(149):1-27.
18. Caves D.W., Christensen L.R., Diewert W.E. The economic theory of index numbers and the measurement of input, output and productivity. Econometrica 1982, 50(6):1393-1414.
19. Claessens S., Dermiguc-Kunt A., Huizinga H. How does foreign banking entry affect domestic banking markets?. Journal of Banking and Finance 2001, 25(5):891-911.
20. Coelli T.J., Prasada Rao D.S., O'Donnell C.J., Battese G.E. An introduction to efficiency and productivity analysis 2005, Springer, New York. 2nd ed.
21. Cooper W.W., Seiford L.M., Tone K. Data envelopment analysis: A comprehensive text with models, applications, references and DEA-Solver Software 2007, Springer, New York. 2nd ed.
22. Cummins J.D., Weiss M.A., Zi H. Organizational form and efficiency: The coexistence of stock and mutual property liability insurers. Management Science 1999, 45(9):1254-1259.
23. D'Souza J., Megginson W.L. The financial and operating performance of newly privatized firms in the 1990s. Journal of Finance 1999, 54(4):1397-1438.
24. De Bandt O., Davis P. Competition, contestability and market structure in European banking sectors on the eve of EMU. Journal of Banking and Finance 2000, 24(6):1045-1066.
25. De B. Ownership effect on bank performance. Paper presented at the Fifth Annual Conference on Money and Finance in the Indian Economy 2003.
26. DeYoung R., Nolle D. Foreign-owned banks in the United States: Earning market share or buying it?. Journal of Money, Credit, and Banking 1996, 28(4):622-636.
27. Elyasiani E., Mehdian S.M. Productive efficiency performance of minority and non-minority owned banks: A non-parametric approach. Journal of Banking and Finance 1992, 16(5):933-948.
28. Fare R., Grosskopf S., Norris M., Zhang Z. Productivity growth, technical progress and efficiency change in industrialized countries. The American Economic Review 1994, 84(1):66-83.
29. Fare R., Grosskopf S., Roos P. On Malmquist productivity indexes. Index numbers: Essays in honor of Sten Malmquist 1998, Kluwer Academic Publishers. R. Färe, S. Grosskopf, R.R. Russell (Eds.).
30. Farrell M.J. The measurement of productive efficiency. Journal of the Royal Statistical Society A 1957, 120(3):253-281.
31. Gedajlovic E., Shapiro D. Ownership structure and firm profitability in Japan. Academy of Management Journal 2002, 45(3):565-575.
32. Grigorian D.A., Manole V. Determinants of commercial bank performance in transition: An application of data envelopment analysis. Comparative Economic Studies 2006, 48(3):497-522.
33. Hasan I., Hunter W.C. Management efficiency in minority and women owned banks. Federal Reserve Bank of Chicago Economic Perspectives 1996 March, 20-28.
34. Hasan I., Marton K. Development and efficiency of the banking sector in a transitional economy: A Hungarian experience. Journal of Banking and Finance 2003, 27(12):2249-2271.
35. Havrylchyk O. Efficiency of the polish banking industry: Foreign versus domestic banks. Journal of Banking and Finance 2006, 30(7):1975-1996.
36. Hymer S. The international operations of national firms: A study of direct investment 1976, MIT Press, Cambridge.
37. Isik I. Productivity, technology and efficiency of de novo banks: A counter evidence from Turkey. Journal of Multinational Financial Management 2008, 18(5):427-442.
38. Isik I., Hassan M.K. Technical, scale and allocative efficiencies of Turkish banking industry. Journal of Banking and Finance 2002, 26(4):719-766.
39. Isik I., Hassan M.K. Efficiency, ownership and market structure, corporate control and governance in the Turkish banking industry. Journal of Business Finance and Accounting 2003, 30(9-10):1363-1421.
40. Jaffry S., Ghulam Y., Pascoe S., Cox J. Regulatory changes and productivity of the banking sector in the Indian sub-continent. Journal of Asian Economics 2007, 18(3):415-438.
41. Jensen R., Szulanski G. Stickiness and the adaption of organizational practices in cross-border knowledge transfers. Journal of International Business Studies 2004, 35(6):508-523.
42. Jeon Y., Miller S.M. Performance of domestic and foreign banks: The case of Korea and the Asian financial crisis. Global Economic Review 2005, 34(2):145-165.
43. Kwan S.H., Eisenbeis R. An analysis of inefficiencies in banking. Journal of Banking and Finance 1995, 19(3/4):733-734.
44. Lang, L. H. P., & So, R. W. (2002). Ownership Structure and Economic Performance, Working Paper, Chinese University of Hong Kong.
45. Leightner J.E., Lovell C.A.K. The impact of financial liberalization on the performance of thai banks. Journal of Economics and Business 1998, 50(2):115-131.
46. Lovell, K. (2001), Future Research Opportunities in Efficiency and Productivity Analysis, Efficiency Series Paper 1, University of Oviedo Department of Economics.
47. Luo Y., Shenkar O., Nyaw M.K. Mitigating liabilities of foreignness: Defensive versus offensive approaches. Journal of International Management 2002, 8(3):283-301.
48. Mahajan A., Rangan N., Zardkoohi A. Cost structures in multinational and domestic banking. Journal of Banking and Finance 1996, 20(2):283-306.
49. Micco, A., Panizza, U., & Yanez, M. (2004). Bank Ownership and Performance, Working Paper, Inter-American Development Bank.
50. Miller S.R., Parkhe A. Is there a liability of foreignness in global banking? An empirical test of banks' X-efficiency. Strategic Management Journal 2002, 23(1):55-75.
51. Miller S.R., Parkhe A. Is there a liability of foreignness in global banking? An empirical test of banks' X-efficiency. Strategic Management Journal 2002, 31(1):323-337.
52. Perry P. Do banks gain or lose from inflation. Journal of Retail Banking 1992, 14(2):25-40.
53. Pi L., Timme S.G. Corporate control and bank efficiency. Journal of Banking and Finance 1993, 17(2-3):515-530.
54. Ray S.C. Data envelopment analysis: Theory and techniques for economics and operations research 2004, Cambridge University Press, Cambridge.
55. Ray S.C., Desli E. Productivity growth, technical progress, and efficiency change in industrialized countries: Comment. American Economic Review 1997, 87(5):1033-1039.
56. Resti A. Evaluating the cost efficiency of the Italian banking system: What can be learned from the joint application of parametric and non-parametric techniques. Journal of Banking and Finance 1997, 21(2):221-250.
57. Rezitis A.N. Productivity growth in the Greek banking industry: A non-parametric approach. Journal of Applied Economics 2006, 9(1):119-138.
58. Sathye M. Efficiency of banks in a developing economy: The case of India. European Journal of Operational Research 2003, 148(3):662-671.
59. Sealey C., Lindley J.T. Inputs, outputs and a theory of production and cost at depository financial institutions. Journal of Finance 1977, 32(4):1251-1266.
60. Shanmugam K.R., Das A. Efficiency of Indian commercial banks during the reform period. Applied Financial Economics 2004, 14(9):681-686.
61. Staikouras C., Wood G. The determinants of bank profitability in Europe. Paper presented at the European Applied Business Research conference 2003.
62. Staikouras C., Mamatzakis E., Koutsomanoli-Filippaki A. An empirical investigation of operating performance in the new European banking landscape. Global Finance Journal 2008, 19(1):32-45.
63. Stijn C., Simeon D. Ownership concentration and corporate performance in the Czech Republic. Journal of Comparative Economics 1999, 27(3):498-513.
64. Sturm J.E., Williams B. Foreign bank entry, deregulation and bank efficiency: Lessons from the Australian experience. Journal of Banking and Finance 2004, 28(7):1775-1799.
65. Thomsen S., Pedersen T. Ownership structure and economic performance in the largest European companies. Strategic Management Journal 2000, 21(6):689-705.
66. Weill L. Banking efficiency in transition economies: The role of foreign ownership. Economics of Transition 2003, 11(3):569-592.
67. Weill L. Is there a gap in bank efficiency between CEE and Western European countries?. Comparative Economic Studies 2007, 49(1):101-127.
68. White H.J. A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica 1980, 48(4):817-838.
69. Zaheer S., Mosakowski E. The dynamics of the liability of foreignness: A global study of survival in financial services. Strategic Management Journal 1997, 18(6):439-464.