Profit Efficiency and Its Determinants: A Comparative Analysis of Energy and Non-Energy Sectors of Pakistan using Stochastic Frontier Approach

2020 ◽  
Author(s):  
Mohsin Abbas ◽  
Danish Ahmed Siddiqui
Keyword(s):  
Comparative Analysis ◽  
Stochastic Frontier ◽  
Stochastic Frontier Approach ◽  
Profit Efficiency

scholarly journals The Determinants of Cost/Profit Efficiency of Islamic Banks Before, During and After the Subprime Crisis Using SFA Approach

2015 ◽  
Vol 5 (2) ◽  
pp. 74 ◽  
Author(s):  
Asma Mghaieth ◽  
Imen Khanchel
Keyword(s):  
Stochastic Frontier ◽  
High Ratio ◽  
Capital Adequacy ◽  
Subprime Crisis ◽  
Islamic Banks ◽  
Stochastic Frontier Approach ◽  
Profit Efficiency ◽  
Operational Costs ◽  
Specific Number ◽  
Us Decline

In this paper we estimate the determinants of cost and profit efficiency of Islamic banks using the stochastic frontier approach SFA. We use 62 Islamic banks in sixteen countries of the MENA and South-East Asia regions during the period 2004-2010. We compare the efficiency between Islamic banks during the subprime crisis phases. Moreover, we examine the variables specific to the banks which can explain the sources of inefficiency and those let us decline the scores of cost and profit efficiency on a specific number of variables (total assets, capital adequacy, profitability, credit risk, operational costs). Results reveal that, Islamic banks in our study are more efficient in the generation of the profits rather than in the control of the costs. Thus, only the total assets and the operational costs represent the determinants of cost efficiency of the Islamic banks. Finally, for the profit efficiency our results indicate that the Islamic banks with high equities and high ratio of profitability are efficient in terms of profit.

Estimation of Profit Efficiency in the Hotel Industry Using a Bayesian Stochastic Frontier Model

2018 ◽  
Vol 59 (4) ◽  
pp. 364-375 ◽  
Author(s):  
Antonio Arbelo ◽  
Marta Arbelo-Pérez ◽  
Pilar Pérez-Gómez
Keyword(s):  
Customer Satisfaction ◽  
Confidence Intervals ◽  
Stochastic Frontier ◽  
Hotel Industry ◽  
Stochastic Frontier Model ◽  
Occupancy Rate ◽  
Stochastic Frontier Approach ◽  
Profit Efficiency ◽  
Frequentist Approach ◽  
Hotel Sector

The present study measured profit efficiency and its determinants in the hotel sector in Spain from 2010 to 2014, using a Bayesian stochastic frontier approach. This model provides estimates of efficiency and more accurate confidence intervals than the traditional frequentist approach. The results revealed that the hotels are operating with significant profit inefficiencies. These inefficiencies are significantly affected by size, location, occupancy rate by region, customer satisfaction, and whether the hotel is affiliated or independent. Finally, the study points out the strategic implications of these findings, to improve the efficiency of the hotels.

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