There are two typical subprocesses in bank production—deposit generation and loan generation. Aiming to open the black box of input-output production of banks and provide comprehensive and accurate assessment on the efficiency of each stage, this paper proposes a two-stage network model with bad outputs and supper efficiency (US-NSBM). Empirical comparisons show that the US-NSBM may be promising and practical for taking the nonperforming loans into account and being able to rank all samples. Applying it to measure the efficiency of Chinese commercial banks from 2008 to 2012, this paper explores the characteristics of overall and divisional efficiency, as well as the determinants of them. Some interesting results are discovered. The polarization of efficiency occurs in the bank level and deposit generation, yet does not in the loan generation. Five hypotheses work as expected in the bank level, but not all of them are supported in the stage level. Our results extend and complement some earlier empirical publications in the bank level.

We study the education premiums in the online peer-to-peer (P2P) lending marketplace in which individuals bid on unsecured microloans applied by individual borrowers. Using more than 100,000 consummated and failed listings from the largest online P2P lending marketplace in China — Paipaidai.com, we examine whether higher education level lead to lower interest rates and lower risk of default. We find that controlling for other characteristics of borrowers, borrowing rates of borrowers with bachelor’s degrees is 0.141 percent higher than that of borrowers with associate’s degrees, and that female borrowers’ education premiums were higher than their male counterparts. With regard to loan performance, borrowers with bachelor’s degrees are 13% less likely to default than the borrowers with associate’s degrees. Therefore, the education premiums in the P2P lending marketplace are rational.

Based on the database data of Chinese industrial enterprises from 2000 to 2007 and the LP method, this paper measures the total factor productivity of enterprises and investigates the effect of different mixed ownership forms on enterprises’ efficiency and the effect of heterogeneous ownership balance on the mixed ownership enterprises’ efficiency. The state-owned enterprise and mixed ownership enterprise are identified by the enterprise’s paid-up capital. The results show that, on the whole, for the mixed ownership enterprise, the higher the diversification degree of the shareholders is, the higher the efficiency becomes, and in different types of industries, the mixed forms of shareholders have different effects on the efficiency of enterprises. The heterogeneous ownership balance and the enterprise efficiency show nonlinear U-type relationships. Both the higher and lower heterogeneous ownership balance degrees will promote the enterprise’s efficiency. However, when the ownership balance degree is in the range of [0.2 0.5], the increase in ownership balance will lead to the decline of enterprise efficiency. Therefore, when introducing non-state-owned capital, state-owned enterprises should take full account of their own characteristics by rationally controlling the shareholding ratio of non-state-owned capital and play the positive role of a mixed ownership structure in corporate governance with appropriate ownership balances.

No abstract

No abstract

The performances of different types of banks may vary due to heterogeneous technology, which can be examined by metafrontier analysis. However, the metafrontier constructed in most existing literature is concave, resulting in a biased estimation of efficiency. Based on 93 Chinese commercial banks over the period of 2005–2016, we first evaluate the banking efficiency by using the proposed data envelopment analysis (DEA) model, NCMeta-US-NSBM, which simultaneously incorporates a non-concave metafrontier technique, undesirable outputs, and super efficiency into a network slacks-based measure (NSBM) model. Subsequently, the evolution of banking efficiency during the study period is investigated on the basis of the Dagum Gini index and kernel density estimation methods. The main empirical results show the following. 1) There exists significant disparity/heterogeneity in banking efficiency for overall efficiency, productivity efficiency, and profitability efficiency. 2) The results of the technology gap ratio (TGR) and the evaluation of stated-owned banks (SOB), joint-stock banks (JSB), and city commercial banks (CCB) in the productivity stage are higher than those in the profitability stage, indicating that most of the banks have a large space for improvement, especially for SOB and JSB in the profitability stage. 3) The major contribution of the overall difference of banking efficiency in China is the intensity of the transvariation. 4) Although the kernel density estimations for different efficiency scores have similar distributions in corresponding years, the multilevel differentiation phenomenon of banking efficiency may appear after 2008.

No abstract

No abstract