Is there a single frontier in a single European banking market?

Bos, Jaap; Schmiedel, Heiko

doi:10.1016/j.jbankfin.2006.12.004

Cited by 158 publications

(113 citation statements)

References 42 publications

(34 reference statements)

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“…It is very interesting to notice that the meta-frontier approach has not yet been applied in the automobile-industry related research though it has been employed in many fields in the past decade such as Bos & Schmiedel (2007), Chen & Song (2008), Matawie & Assaf (2008) Kontolaimou & Tsekouras (2010), Lin (2011), Mariano et al (2011), and Chen & Yang (2011. This highlights the significance of applying the meta-frontier approach to scrutinize the efficiency of global automakers from an unexplored perspective.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Independent variables include the input variable: price of labor, price of capital. These are quite standard and well-established in efficiency estimation (Bauer et al, 1998;Altunbas et al, 2000;Altunbas et al, 2001;Beccalli, 2004;Weill, 2004;Bos & Schmiedel, 2007). The price of labor is calculated as the ratio of salaries and benefits expenses to the number of employees.…”

Section: Data Descriptionmentioning

confidence: 99%

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Which One is More Efficient? German or Japanese Automobile Industry: A Meta-frontier with Technology Gap Comparison

Liu¹,

Chen²

2016

IBR

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The goal of this paper is to compare the cost efficiency of the automobile industry in Germany and Japan during the period of 1980-2014 by applying the Meta-Frontier Cost Function. Despite the constant competition and the global automobile industry crisis during 2008-2010, only a few existing studies compare the efficiency of the industry cross countries. However, these all fail to address various types of technology adopted and the environment faced by automakers across countries. The meta-frontier model became a recognized and useful tool to evaluate technical efficiency of firms applying dissimilar technologies. Overall, the results signify that the cost efficiency of the German automobile industry by average is better than that of the Japanese one and the German one uses more superior production technique though it was lower the Japanese one in the 1980s. The difference reversed in the 1990s and has been enlarging since the 1990s to the end of the observation period.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Data Descriptionmentioning

confidence: 99%

Which One is More Efficient? German or Japanese Automobile Industry: A Meta-frontier with Technology Gap Comparison

Liu¹,

Chen²

2016

IBR

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“…The equity to total assets ratio has also been widely used in European cross country bank studies, including those by Bos and Schmiedel (2007) and Kosak and Zoric (2011), and, in a study concerning central and Eastern European banks, by Koutsomanoli-Filippaki et al (2009) As such, Berger and Mester (2003) treat it as an environmental variable calculated as the "market-average of nonperforming loans (past due at least 90 days or on a non-accrual basis) divided by total loans" -hence being common across all banks…”

Section: Risk Management Control Variables Used In the Bank Efficiencmentioning

confidence: 99%

How relevant is the choice of risk management control variable to non-parametric bank profit efficiency analysis? The case of South Korean banks

et al. 2015

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Adopting a profit-based approach to the estimation of the technical efficiency of South Korean banks over the 2007Q3 to 2011Q2 period, we systematically analyse, within a nonparametric DEA analysis, how the choice of risk management control variable impacts upon such estimates. Using the model of Liu et al. (2010), we examine the dependency of the estimated technical efficiency scores on the chosen risk control variables embracing loan loss provisions and equity as good inputs and non-performing loans as a bad output. We duly find that, both for individual banks and banking groups, the mean estimates are indeed model dependent although, for the former, rank correlations do not change much at the extremes. Based on the application of the Simar and Zelenyuk (2006) adapted Li (1996) test, we then find that, if only one of the three risk control variables is to be included in such an analysis, then it should be loan loss provisions. We also show, however, that the inclusion of all three risk control variable is to be preferred to just including one, but that the inclusion of two such variables is about as good as including all three. We therefore conclude that the optimal approach is to include (any) two of the three risk control variables identified. The wider implication for research into bank efficiency is that the optimal choice of risk management control variable is likely to be crucial to both the delivery of un-biased estimates of bank efficiency and the specification of the model to be estimated.

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“…Most studies on banks' efficiency (Altunbas¸, Gardener, Molyneux, and Moore, 2001;Berger, 1995;Berger and Humphrey, 1997;Berger and Mester, 1997;Bos and Schmiedel, 2007;Goddard, Molyneux, and Wilson, 2001;Maudos, Pastor, Pérez, and Quesada, 2002;Schure, Wagenvoort, and O'Brien, 2004;Williams, Peypoch and Barros, 2009) focus on the US and Europe and neglect banks in emerging countries such as Nigeria. Multi-country analysis usually considers factors such as legal tradition, accounting conventions, regulatory structures, property rights, culture and religion as possible explanations for cross-border variations in financial development and economic growth (Beck, Demirgüc¸-K, and Levine, 2003;Beck and Levine, 2004;La Porta, Lopez-de-Silanes, Shleifer, and Vishny, 1997;Levine, 2003;Stulz and Williamson, 2003).…”

Section: Literature Reviewmentioning

confidence: 99%

Banking Consolidation in Nigeria, 2000–2010

Barros

Caporale

2012

Journal of African Business

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This study examines the Nigerian banking consolidation process using a dynamic panel for the period 2000-2010. The Arellano and Bond (1991) dynamic GMM approach is adopted to estimate a cost function taking into account the possible endogeneity of the covariates. The main finding is that the Nigerian banking sector has benefited from the consolidation process, and specifically that foreign ownership, mergers and acquisitions and bank size decrease costs.Directions for future research are also discussed.

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Is there a single frontier in a single European banking market?

Abstract: 4Non-technical summary 5

Cited by 158 publications

References 42 publications

Which One is More Efficient? German or Japanese Automobile Industry: A Meta-frontier with Technology Gap Comparison

Which One is More Efficient? German or Japanese Automobile Industry: A Meta-frontier with Technology Gap Comparison

How relevant is the choice of risk management control variable to non-parametric bank profit efficiency analysis? The case of South Korean banks

Banking Consolidation in Nigeria, 2000–2010

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