Using the Stochastic Frontier Approach (SFA), this study investigates the cost and profit efficiency effects of bank mergers on the US banking industry. We also use the non-parametric technique of Data Envelopment Analysis (DEA) to evaluate the production structure of merged and non-merged banks. The empirical results indicate that mergers have improved the cost and profit efficiencies of banks. Further, evidence shows that merged banks have lower costs than non-merged banks because they are using the most efficient technology available (technical efficiency) as well as a cost minimizing input mix (allocative efficiency). The results suggest that there is an economic rational for future mergers in the banking industry. Finally, mergers may allow the banking industry to take advantage of the opportunities created by improved technology. Copyright 2007 The Authors Journal compilation (c) 2007 Blackwell Publishing Ltd.
Graphical abstract We analyze the operating performance of Community banks (CB) and Non-community Banks (NCB) three quarters before and three quarters after the Covid-19 outbreak. The horizontal axis shows the event quarter, where Quarter = 0 is the 4th quarter of 2019. We analyze the risk-taking adjustments of Community banks (CB) and Non-community Banks (NCB) three quarters before and three quarters after the Covid-19 outbreak. The horizontal axis shows the event quarter, where Quarter = 0 is the 4th quarter of 2019.
Purpose This study analyzes financial preparation for retirement of American men and women, using the 2013 Survey of Consumer Finances (SCF). The purpose of this paper is to research the adequacy of retirement preparation for men and women in their positive savings periods. Design/methodology/approach This research uses probit analysis and multiple regression models to observe the statistical significance of several independent variables on retirement savings. The specific variables of analysis are socio-demographic, work related, financial assets, and attitudes about saving and investing for a sub-sample of individuals aged 35–45, 46–59, and 60–67. Findings For retirement preparation, income is a significant factor for both men and women aged 35–45. Excellent health is significant for both men and women aged 46–59, whereas the number of weeks worked per year was significant for men and women aged 60–67. In addition, health has significant positive effects on the amount of financial wealth invested in stocks while age has significant negative effects. Research limitations/implications This research uses data from the 2013 SCF to analyze factors affecting retirement preparation for men and women in their positive savings periods. The findings from this study can aid policy makers in designing retirement saving programs that can effectively incentivize individuals for adequately prepare for retirement. Originality/value Previous studies have focused on the effect of factors such as age, health, marital status, work history, education, income, family/household composition, and occupation on retirement savings over an individual’s lifetime. This study focuses specifically on retirement preparation or adequacy for men and women who are in their positive savings periods.
This study examines the effect of various social, demographic, and economic variables on retirement preparation and discusses ways in which policy makers can use this information to mandate legislation that will motivate individuals to save for retirement. Using data from the Survey of Consumer Finances, probit analysis indicates that respondents' income and job tenure have significant positive effects on predicting employer sponsored pension plan eligibility. Conversely, the findings do not support the assumption that the probability of pension plan eligibility increases with age and education levels. In addition, we did not find race, marital status or home ownership to be significant factors in pension plan eligibility. Regarding contributions to pension plans, the findings indicate that income, education and net worth have significant positive effects on whether or not an individual is contributing to a plan. Conversely, the findings regarding household size were significant and negative regarding the contribution decision. Race, health, and an individual's savings habits do not appear to have significant effects on the decision to contribute to employer sponsored pension plans. Additional findings; however, indicate that individuals who report the reason for saving is retirement are more likely to contribute to their pension plans. Finally, the results regarding future expectations for the economy were insignificant in relation to whether or not an individual was contributing to his or her pension plan.The findings may be used to aid policy makers in targeting particular groups of individuals to motivate them to contribute to their company sponsored retirement plans. Policies that encourage retirement planning education programs as well as tax credits on contributions made by individuals in the lower and middle income tax brackets are just a couple of suggestions that could motivate specific groups of individuals to save for retirement.
In this study, we analyze financial preparation for retirement. Specifically, probit analysis was conducted using data from the Survey of Consumer Finances to compare and contrast variables affecting retirement preparation between men and women aged thirty to thirty-nine. We specifically analyze two dependent variables: whether or not an individual is eligible for a retirement plan and whether or not an individual is contributing to a retirement plan.The findings indicate that good health and work history have significant positive effects on retirement plan eligibility whereas age and education levels have significant negative effects. Regarding retirement plan contributions, the findings indicate significant positive effects regarding income and womenhood. Therefore, the findings generally support the hypothesis of income as a predictor of retirement plan preparation for women in their thirties. In addition, the findings indicate that women who are divorced, separated, or living with a partner are more likely to contribute to their pension plans through work. Education is significant and positive as a predictor for the decision to contribute to a pension plan for women in their thirties, thus supporting our hypothesis of a significant positive relationship between education and pension plan contributions. Conversely, the findings regarding work history (length of employment and number of weeks worked per year) and the decision to contribute to a pension plan were significant and negative for women in their thirties. This result could be due to a general unconcerned attitude regarding retirement preparation in this age group since actual retirement for most is at least thirty years away. Finally, household size was insignificant as a predictor of both pension plan eligibility and the decision to contribute. Therefore, the findings do not support the hypothesis of household size as a predictor of retirement plan preparation. Thus, it appears that if individuals in large households have less discretionary income to spend on certain items, contributions to a retirement plan does not seem to be influenced by family size.
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