Firm growth and efficiency in the banking industry: A new test of the efficient structure hypothesis

Homma, Tetsushi; Tsutsui, Yoshiro; Uchida, Hirofumi

doi:10.1016/j.jbankfin.2013.11.031

Cited by 59 publications

(34 citation statements)

References 28 publications

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“…There are some empirical studies in the banking market that provide support for the SCP hypothesis. Homma et al (2014), Chan et al (2015) conclude that the higher market concentration will decrease an efficiency rate in the banking industry.…”

mentioning

confidence: 99%

Spin-off policy and efficiency in the Indonesian Islamic banking industry

Arif

Haribowo

Suherlan

2018

Banks and Bank Systems

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Indonesian Islamic Banking Act requires conventional banks to spin-off their Islamic business units if they had fulfilled the spin-off criteria. Some of the Islamic business units had done the spin-off process although they are not fulfilling the spin-off criteria. The data showed that there is an efficiency decline after the spun-off. This study is going to examine the spin-off’s impact on the efficiency in spin-off banks. The method used in this paper is a difference-in-differences analysis. The sample used is four spin’s banks as treatment objects and two Islamic full-pledge banks as control objects. This research shows that there is an impact of spin-off policy on the efficiency in spin-off banks. There is an efficiency decrease in spin-off banks after the activities. It implies that the spin-off policy is not the only strategy that can be implemented. The policy-makers can choose other strategies to enhance the development of Islamic banking industry.

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mentioning

confidence: 99%

Spin-off policy and efficiency in the Indonesian Islamic banking industry

Arif

Haribowo

Suherlan

2018

Banks and Bank Systems

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“…Modern theories of industry dynamics assume that productivity determines the firm's performance and growth, and the empirical literature on the topic has followed this view, tracing back firms' growth to the evolution of productivity (Pozzi and Schivardi 2016). The efficient structure hypothesis also predicts that under the pressure of market competition, efficient firms defeat the competition and grow (Demsetz 1973;Homma et al 2014). Accordingly, we hypothesize:…”

Section: Productivitymentioning

confidence: 96%

Growth Intention and Growth in Small Accounting Firms

Kolvereid

Åmo

2019

Administrative Sciences

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Previous research has found that owner/manager growth intention is related to subsequent firm growth, but growth intention alone only explains about 4–5% of the variance in actual firm growth. The purpose of this study is to investigate factors in addition to growth intention that may help us to explain a higher proportion of the variance in firm growth. We selected three factors for our study: Entrepreneurial orientation, versatile human resources and labor productivity. We tested the hypotheses in a sample of small Norwegian accounting firms. The findings indicate that, after controlling for growth intention, versatile human resources and labor, productivity contributed to the explanation of the variance in sales and employment growth, while entrepreneurial orientation has no such additional effect.

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“…Among these works, some studies focused on the relationship between efficiency and some environmental variables or managerial variables. The main contributions studied the banking system in France [18], Germany [19], Italy [20][21][22][23][24], Spain [25], Greek [16], United Kingdom [26], America [12,[27][28][29][30][31][32], Australia [33], China [34] and Japan [35,36]. Other studies tried to compare the banking system of different countries [37][38][39][40][41][42][43][44].…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainability and Efficiency of the European Banking Market after the Global Crisis: The Impact of Some Strategic Choices

Pampurini

Quaranta

2018

Sustainability

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Abstract:In the last few years, financial managers, supervisors and policy makers have been collectively engaged on the role of the banking and financial sector in relation to environmental and sustainability issues. The efficiency level that characterizes the production process of banks and financial intermediaries is strictly interconnected with sustainability so that, from a long term perspective, cost and profit efficiency reveals to be one of the most important premises for sustainability. This work aimed to analyze the level of efficiency achieved by European banking groups to verify if some key drivers of efficiency deriving from strategic choices outlined by literature on single banks (i.e., size, number of branches, cost income ratio and geographical location) are the same when considering banking groups. The study is focused on the period 2011-2016 that is characterized by, at least, two critical events that occurred after the sub-prime crisis. The level of efficiency of each banking group was measured with the Stochastic Frontier Approach and then the units were clustered into three homogeneous sets. Observing these clusters, the results show that the groups belonging to some specific countries appear to be more efficient with respect to others. Moreover, the banking groups characterized by many branches and a high level of cost income ratio exhibit a medium level of efficiency. Eventually, the biggest banking groups are the least efficient.

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Firm growth and efficiency in the banking industry: A new test of the efficient structure hypothesis

Cited by 59 publications

References 28 publications

Spin-off policy and efficiency in the Indonesian Islamic banking industry

Spin-off policy and efficiency in the Indonesian Islamic banking industry

Growth Intention and Growth in Small Accounting Firms

Sustainability and Efficiency of the European Banking Market after the Global Crisis: The Impact of Some Strategic Choices

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