Determinants of Banking Efficiency and Survival in Taiwan with Consideration of the Real Management Cost

Liang, Lien‐Wen; Cheng, Cheng-Ping; Lin, Yi-Pin

doi:10.1080/1540496x.2018.1470504

Cited by 7 publications

(12 citation statements)

References 58 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The financial variables are divided into bank-specific variables and macroeconomic variables for the economies in which the banks were headquartered [2,10,23,31]. The literature used the bank-specific financial indicators as variables to show the distinct characteristics of banks [43][44][45][46]. Pasiouras and Kosmidou [44] used cost-to-income ratio, liquidity ratio, equity ratio, and asset size.…”

Section: Variables and Definitionsmentioning

confidence: 99%

“…Pasiouras and Kosmidou [44] used cost-to-income ratio, liquidity ratio, equity ratio, and asset size. Liang, Chang, and Lin [45] adopted non-performing loans (NPL), loan-loss-reserve ratio, and non-interest expense ratio. The rationale for using the cost-to-income ratio is that it indicates the efficiency of cost management, measuring the degree to which banks generate revenues relative to expenses.…”

Section: Variables and Definitionsmentioning

confidence: 99%

See 1 more Smart Citation

Using Environmental, Social, Governance (ESG) and Financial Indicators to Measure Bank Cost Efficiency in Asia

2021

Self Cite

View full text Add to dashboard Cite

Environmental, social, and governance (ESG) practices have been used as non-financial indicators to measure bank performance worldwide in the last decade. The United Nations (UN) has specified 17 Sustainable Development Goals (SDGs) for the implementation of these ESG concepts. However, it remains unclear whether the costs of ESG have exceeded the benefits. The purpose of this study is to examine the impact of ESG on the cost efficiency of developed and developing Asian banks using a two-step approach comprising stochastic frontier analysis (SFA) and stochastic metafrontier analysis (SMF). The data sample from 2015 to 2018 is separated into two groups: 60 Asian developed economies and 85 developing economies. The results show that banks in the developed Asian economies become more cost-efficient through environmentally friendly activities. The banks in the developing Asian economies increase their cost efficiency by socially responsible activities and improved governance. Moreover, banks in the developed Asian economies outperformed those in the developing Asian economies in terms of technology gap ratio (TGR) and metafrontier cost efficiency (MCE). The results of this study benefit not only investors and bank managers but also the entire banking sector and the world economy.

show abstract

Section: Variables and Definitionsmentioning

confidence: 99%

Section: Variables and Definitionsmentioning

confidence: 99%

Using Environmental, Social, Governance (ESG) and Financial Indicators to Measure Bank Cost Efficiency in Asia

2021

Self Cite

View full text Add to dashboard Cite

show abstract

“…Conversely, research conducted by Samad (2019), Fernandes et al (2018), and Liang et al (2018 found the opposite larger banks are prone to inefficiency issues stemming from complex bureaucratic processes. These numerous divisions hinder communication between management and staff and the difficulties in adapting to changes in the business environment.…”

Section: Figure 2 Operational Cost To Operational Income Ratio Of Eac...mentioning

confidence: 92%

“…Positive profitability boosts the bank's resilience and supports its investments. It can also serve as an indicator for comparing a bank's efficiency to its competitors (Kamarudin et al, 2019;Liang et al, 2018;Lotto, 2019;Sufian & Kamarudin, 2015). Liang et al (2018) and Lotto (2019) found that profitability significantly positively affects bank efficiency.…”

Section: Figure 2 Operational Cost To Operational Income Ratio Of Eac...mentioning

confidence: 99%

Determinant of Efficiency in the Indonesian Islamic Banks

2023

View full text Add to dashboard Cite

This study aims to analyze the factors that influence the level of efficiency of Islamic commercial banks in Indonesia. The research employs a panel data analysis and a non-parametric Data Envelopment Analysis (DEA) to measure the level of efficiency. The panel data analysis showed that company size, profitability, liquidity, and management significantly affect the level of efficiency of Islamic banks in Indonesia, while capital and financing risk have no significant impact. The efficiency of Islamic banks in Indonesia should be maintained by balancing the distribution of assets, ensuring portfolio diversification, maintaining sufficient liquidity, and paying attention to management quality. The originality of this study, to the best of the author's knowledge, is that it is the first study to examine the determinants of efficiency in Indonesian Islamic commercial banks using quarterly data from the period of 2015-2020. As a result, the data analyzed has a sufficient amount.JEL Classification: C02, C14, C23, G01How to Cite:Aliyah, H., Hamid, A., & Al Arif, M. N. R. (2023). Determinants of Efficiency in the Indonesian Islamic Banks. Signifikan: Jurnal Ilmu Ekonomi, 12(1), 161-174. https://doi.org/10.15408/sjie.v12i1.30376.

show abstract

“…where the first superscript w and s represent weak ties and strong connection, respectively. Secondly, following various prior studies [94][95][96], we use survival rate χ T of corporations during time interval [0, T] to measure the systematical risk of the market and the possibility of expected loss ϕ i T to measure corporate individual risk of c i during time interval [0, T]. According to A2 and A3, ϕ i T can be represented as follows:…”

Section: Assumption 3 (A3) Entrepreneurs Maintain Their Social Network To Maximize Their Expected Return On Investmentmentioning

confidence: 99%

Entrepreneurs’ Social Network and Corporate Risk Contagion: A Dynamic Evaluation and Simulation Approach

Yang

Qian

2020

Complexity

View full text Add to dashboard Cite

Interactions of entrepreneurs through social networks provide an available path for corporate risk contagions. However, the issue how entrepreneurs’ social networks influence on corporate risk contagion is still received limited attention from scholars. In this study, a framework is proposed to describe entrepreneurs’ interaction and corporate value creation. The main results of multiagent simulations indicate the following. First, either weak ties or strong connections of social networks can enhance density of corporate risk contagion. However, only strong connections can be moderated by entrepreneurs’ risk preference. Second, weak ties improve risk exposure of individual corporations, while strong connections may probably decrease systematical risk of the market. Third, weak ties are important for mature corporations to achieve business success. However, for startups, strong connections are more valuable to maintain. The findings of this study not only provide theoretical support from some widely accepted economic phenomenon but also provide explanations for conflicting results from some previous literatures.

show abstract

Determinants of Banking Efficiency and Survival in Taiwan with Consideration of the Real Management Cost

Cited by 7 publications

References 58 publications

Using Environmental, Social, Governance (ESG) and Financial Indicators to Measure Bank Cost Efficiency in Asia

Using Environmental, Social, Governance (ESG) and Financial Indicators to Measure Bank Cost Efficiency in Asia

Determinant of Efficiency in the Indonesian Islamic Banks

Entrepreneurs’ Social Network and Corporate Risk Contagion: A Dynamic Evaluation and Simulation Approach

Contact Info

Product

Resources

About