scholarly journals Regulations, Supervision and Banks' Cost and Profit Efficiency Around the World: A Stochastic Frontier Approach

2007 ◽  
Author(s):  
Fotios Pasiouras ◽  
Sailesh K. Tanna ◽  
C. Zopounidis
Keyword(s):  
Stochastic Frontier ◽  
Stochastic Frontier Approach ◽  
Profit Efficiency ◽  
The World

scholarly journals Mergers decision in Japanese small mutual banks: efficiency improvement or empire buildings?

2009 ◽  
Vol 7 (2) ◽  
pp. 117-125 ◽  
Author(s):  
Nobuyoshi Yamori ◽  
Kozo Harimaya
Keyword(s):  
Cost Efficiency ◽  
Stochastic Frontier ◽  
Efficiency Improvement ◽  
Important Goal ◽  
Stochastic Frontier Approach ◽  
Credit Associations ◽  
Bank Managers ◽  
The World ◽  
Mutual Banks ◽  
Credit Association

With the number of bank consolidations increasing around the world since the 1990s, several studies have examined what factors drive banks to consolidate, and some argue that bank managers who have a motive of empire buildings choose mergers. In this study, we deal with mergers among Japanese small mutual banks (credit associations or Shinkin banks) during the period 1996 to 2005. Japanese credit associations have been experiencing an unprecedented wave of consolidation, with their number decreasing from 410 (March 1996) to 292 (April 2006). Interestingly, unlike stock companies, mutual companies are often expected to be weak in terms of disciplining managers. If so, mutual banks tend to choose inefficient mergers at the expense of other stakeholders. Here, we use the stochastic frontier approach (SFA) to obtain “cost efficiency” proxy. We find that while the efficiency of acquiring credit associations decreases during the merger period, mergers do ultimately improve efficiency. Based on our results we find that raising efficiency, not for building empires, is an important goal for such credit association mergers.

scholarly journals Do ownership and board composition matter? Efficiency and corporate governance in some UK privatised firms

2005 ◽  
Vol 1 (2) ◽  
pp. 8-30
Author(s):  
Giovanni D’Orio
Keyword(s):  
Corporate Governance ◽  
Stochastic Frontier ◽  
Management Decision ◽  
Data Envelopment ◽  
Governance Reform ◽  
Stochastic Frontier Approach ◽  
Decision Unit ◽  
The World ◽  
Statistical Noise

The main aim of this paper is to analyse the role of privatisation and corporate governance reform and modification in the firm’s organisation for the efficiency of the sample firms. Data Envelopment Analysis estimation will be used to understand the level of efficiency achieved by the Management Decision Unit and the stochastic frontier approach will analyse inefficiency in its components (i.e. if inefficiency is due to an adverse state of the world - statistical noise - or if it can be explained with the determinant of other factors such as corporate governance).

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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