A note on cost structure and economies of scale in Greek banking

Karafolas, Simeon; Mantakas, G.

doi:10.1016/0378-4266(95)00004-6

Cited by 30 publications

(19 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…12 Furthermore, diversifying M&A are classified in three sub categories: in cases where the target firm is an insurance company, a security firm and, finally, an investment bank. 13 .…”

Section: The Deregulation Of the Greek Banking Industrymentioning

confidence: 99%

See 1 more Smart Citation

Shareholder wealth effects from mergers and acquisitions in the Greek banking industry

Manasakis

2009

IJBAAF

View full text Add to dashboard Cite

This paper examines the shareholder wealth effects of mergers and acquisitions in the Greek banking industry from 1995 to 2001, using the "event study methodology". The results suggest that targets' shareholders earned significant abnormal returns upon the announcement of horizontal and diversifying deals. On the other hand, bidders' shareholders had significant losses in cases of horizontal and zero effects in diversifying deals. Although mergers and acquisitions in the Greek banking industry are not found to be value-enhancing, they can be rationalized as an external growth strategy, whose goal was to strengthen the position of the participants in the domestic market and help them become more tenacious in a fiercely competitive international environment.

show abstract

“…12 Furthermore, diversifying M&A are classified in three sub categories: in cases where the target firm is an insurance company, a security firm and, finally, an investment bank. 13 .…”

Section: The Deregulation Of the Greek Banking Industrymentioning

confidence: 99%

“…4 Several aspects of the Greek banking industry have been the subject of recent academic research. Karafolas and Mantakas (1996) document operating-cost scale economies over the period 1980-1989. Hondroyiannis et al (1999 suggest that the gradual deregulation increased the competitiveness of the Greek banking industry from 1993 to 1995.…”

Section: Introductionmentioning

confidence: 99%

Shareholder wealth effects from mergers and acquisitions in the Greek banking industry

Manasakis

2009

IJBAAF

View full text Add to dashboard Cite

show abstract

“…In particular, Karafolas and Mantakas (1996) analyse technical change and scale economies over the period 1980^89. Their results suggest that scale economies do not exist, and that the impact of technical change on the performance of Greek commercial banks has been insigni¢cant.…”

Section: " Introductionmentioning

confidence: 99%

“…In recent years, only two empirical works have focused attention on the rate of productivity growth, scale economies and cost e¤ciency of the Greek banking system. In particular, Karafolas and Mantakas (1996) analyse technical change and scale economies over the period 1980^89. Their results suggest that scale economies do not exist, and that the impact of technical change on the performance of Greek commercial banks has been insigni¢cant.…”

Section: " Introductionmentioning

confidence: 99%

Banking Economic Efficiency In The Deregulation Period: Results From Heteroscedastic Stochastic Frontier Models

Christopoulos

Tsionas

2001

The Manchester School

View full text Add to dashboard Cite

The paper provides quantitative estimates of technical and allocative inefficiency measures of the Greek banking sector in the deregulation period. Such estimates are useful tools for bank managers and policymakers in view of the extensive restructuring of the Greek financial system in recent years, and participation of Greece in the Euro‐zone. The paper generalizes recent approaches based on heteroscedastic stochastic frontier models, and shows how to measure both technical and allocative efficiency in such models. The method is applied to cost function estimation for the banking sector. It is found that technical inefficiency is close to 20 per cent, allocative inefficiency is also a substantial part of costs, averaging 14 per cent, and both components have improved drastically in the deregulation period. This suggests that there is plenty of room for improvement in Greek bank profitability and competitiveness in the new European financial environment.

show abstract

“…With respect to the labour input the problem rests with the fact that individual credit unions do not publish statistics on employee numbers making it impossible to compute an input price. With regard to the capital input price, varied theoretical and practical problems make it di¤cult to compute a representative input price irrespective of the form of the ¢nancial organization (see for example, Glass and McKillop (1992) for an analysis of capital input price problems, while Karafolas and Mantakas (1996) provide a more recent analysis vis-a© -vis Greek banking).…”

mentioning

confidence: 99%

An Examination of Borrower Orientation and Scale Effects in UK Credit Unions

McKillop

Ferguson

1998

Ann Public Coop Econ

View full text Add to dashboard Cite

At present there are 597 credit unions operating within the UK with their growth, be it defined in term of new credit union establishment, asset growth or membership growth, placing them as the fasting growing financial grouping in the UK over this last decade. The fundamental motivation of a credit union is to provide financial services to its membership, in particular a depository for savings and an access to consumer credit. As a practical problem there are, however, a number of reasons why credit unions may achieve a less than perfect balance in the treatment of borrowers and savers. For example, maintaining low loan rates may reduce the credit union’s ability to offer high dividend rates while the maintenance of high dividend rates may require higher loan rates. Consequently, the competing pull of these two objectives may result in the emergence of conflict between those credit union members who on the one hand are net savers and those that are net borrowers. If such conflict does emerge it is then likely to place in jeopardy other aspects of a credit union’s function most notably their role as financial counsellors and promoters of thrift within low income communities. The approach taken in this study is to derive an index of member group imbalance and then to employ this index to determine whether member group imbalance has an adverse impact upon the generation of total benefits by individual credit unions. The analysis demonstrates that there is a strong pro‐borrower bias in the operation of UK credit unions with this pro‐borrower bias driven by the regulatory environment within which they operate.

show abstract

A note on cost structure and economies of scale in Greek banking

Cited by 30 publications

References 15 publications

Shareholder wealth effects from mergers and acquisitions in the Greek banking industry

Shareholder wealth effects from mergers and acquisitions in the Greek banking industry

Banking Economic Efficiency In The Deregulation Period: Results From Heteroscedastic Stochastic Frontier Models

An Examination of Borrower Orientation and Scale Effects in UK Credit Unions

Contact Info

Product

Resources

About