The impact of the macroeconomic factors in the bank efficiency: Evidence from the Chinese city banks

Xiang, Chen; Lu, Ching‐Cheng

doi:10.1016/j.najef.2020.101294

Cited by 21 publications

(15 citation statements)

References 54 publications

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“…Apparently, almost all documents adopted the quantitative method in measuring banking performance research constituents. However, studies that measured banking efficiency mainly applied nonparametric analysis DEA [ 5 , 51 ], while SFA was adopted by limited studies [ 37 , 42 , 43 ]. On the other hand, regression analysis was predominantly applied to investigate banking performance from 1990 to 2010 [ 49 , 50 ].…”

Section: Research Directionsmentioning

confidence: 99%

“…In the nineteenth century, the establishment of the savings bank demonstrated city growth in Prussia [ 66 ]. Potentially, banks provide investment capital to increase per capita GDP [ 43 ]. However, Haini documented a contrasting effect of banking development on economic growth through a push out of private investment due to high levels of the banking sector [ 67 ].…”

Section: Research Directionsmentioning

confidence: 99%

“…Hence, higher levels of human capital efficiency were positively relating to bank performance Bose et al [ 38 ] Quantitative Investigated the effect of green banking to improve banks’ financial performance Regression (OLS), panel data, annual reports A positive relationship was found between green banking and banks’ financial performance, while cost-efficiency moderated this relationship. However, banks’ political connection negatively driven this relationship Bhattacharyya et al [ 39 ] Quantitative Investigated the relationship of CSR expenditures and financial inclusion on banking performance Freeman’s stakeholder theory, GMM, panel data In terms of accounting measurement, CSR expenditure and degree of financial inclusion were not linked to banks’ financial performance, while a negative link was found in terms of the stock market return Chen and Lu [ 43 ] Quantitative Examine the impact of the regional disparities in the cost and profit efficiency Intermediation SFA, Annual reports Banking efficiency had a positive correlation to per capita GDP while negatively related to the urban population ratio Chowdhury and Haron [ 5 ] Quantitative Measured efficiency of SEA Islamic banks Intermediation DEA, Malmquist, Annual reports Islamic banks have improved inefficiency in the region Gaies and Nabi [ 69 ] Quantitative Examined the interaction between FDI and external debt The overlapping generation growth model GMM, panel data Banks posited an effect on economic growth. External debt financial enhanced vulnerability to a bank operation that generates a recessionary effect on economic growth Haini [ 67 ] Quantitative Investigated the nonlinear impact of banking sector development on economic growth GMM, dynamic panel da...…”

Section: Appendix 1: Reviewed Documentsmentioning

confidence: 99%

“…Meanwhile, Bhattacharyya et al showed the effect of CSR expenditures and financial inclusion on the performance that define the social sustainability indicator of the banks [39]. Repeatedly, the role and structure of the board, categorisation of deposits and loans, risk exposures (business cycle), macroeconomic factors were also acknowledged in recent banking performance studies [40][41][42][43]. Idiosyncratically, scholars recently focus the components of sustainability of the banking industry from economic, environmental and social aspects [44].…”

Section: Research Directionsmentioning

confidence: 99%

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Research evolution in banking performance: a bibliometric analysis

2021

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Banking performance has been regarded as a crucial factor of economic growth. Banks collect deposits from surplus and provide loans to the investors that contribute to the total economic growth. Recent development in the banking industry is channelling the funds and participating in economic activities directly. Hence, academic researchers are gradually showing their concern on banking performance and its effect on economic growth. Therefore, this study aims to explore the academic researchers on this particular academic research article. By extracting data from the web of Science online database, this study employed the bibliometrix package (biblioshiny) in the ‘R’ and VOSviewer tool to conduct performance and science mapping analyses. A total of 1308 research documents were analysed, and 36 documents were critically reviewed. The findings exhibited a recent growth in academic publications. Three major themes are mainly identified, efficiency measurement, corporate governance effect and impact on economic growth. Besides, the content analysis represents the most common analysis techniques used in the past studies, namely DEA and GMM. The findings of this study will be beneficial to both bank managers and owners to gauge a better understanding of banking performance. Meanwhile, academic researchers and students may find the findings and suggestions to study in the banking area.

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Section: Research Directionsmentioning

confidence: 99%

Section: Research Directionsmentioning

confidence: 99%

Section: Appendix 1: Reviewed Documentsmentioning

confidence: 99%

Section: Research Directionsmentioning

confidence: 99%

See 2 more Smart Citations

Research evolution in banking performance: a bibliometric analysis

2021

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“…Färe and Grosskopf 26 proposed a dynamic DEA model, which can formulate different intertemporal input and output variables into a realistic multi‐output production process across consecutive periods. Subsequently, various types of research utilized the dynamic DEA model to measure the panel data efficiency 27–34 . Dritsaki and Dritsaki 35 studied the causal relationship between energy consumption, economic growth, and CO 2 emissions based on a dynamic DEA approach.…”

Section: Introductionmentioning

confidence: 99%

The effect of forestry on energy efficiency in EU countries: A non‐oriented dynamic slack‐based data envelopment analysis

Lin

Dan

et al. 2021

Energy Science & Engineering

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According to the Paris Agreement signed on 12 December 2015, forests have great impact on controlling CO2 emissions. This study uses the nonoriented dynamic slack‐based data envelopment analysis model to evaluate the impact of a forestry area on the annual and overall energy efficiency in 28 EU countries during 2009‐2016. We found that annual and overall energy efficiency improved slightly and the energy efficiency in each country also changed when the forestry area was used as the output variable. Although the total energy consumption has declined slowly, CO2 emissions have not declined effectively. Thus, it will be challenging for the EU to meet its target of cutting CO2 emissions by 30% by 2030. All countries should take additional measures, such as energetically increasing forestry areas, optimally distributing the labor force among industries, and gradually replacing fossil fuels with renewable energy to improve their energy efficiency.

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The risk‐adjusted profit productivity change in Chinese banks: A comparative analysis of the different type banks

et al. 2021

Self Cite

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to introduce a risk-adjusted profit productivity measure. We further decompose the measure into changes in allocative inefficiency, technical inefficiency, technology, and price effects. In order to compare profit performance and its sources in Chinese banks, we employ 43 Chinese banks from 2015 to 2019 as the sample. We find that all Chinese banks have a significant improvement in profit productivity, and their profit loss mainly results from technical decline. State-owned banks have better profit efficiency, but Chinese city banks have the highest profit productivity growth.The main contribution is that ownership cannot affect profit productivity but can function in production-related components, namely, changes in technical inefficiency and technology. 1 | INTRODUCTION China, including the banking industry and financial markets, has developed rapidly in the past few decades. Currently, the China Construction Bank and the Industrial and Commercial Bank of China are the world's largest banks. It is well known that the banking industry exerts a great influence on the financial system. Moreover, the stability and development of the banking industry is crucial to the economic development of society. State-owned commercial banks (SCBs), stock-jointed commercial banks (JCBs), and city commercial banks (CCBs) are three main types of banks in China (Chen, 2020).SCBs, which can conduct business in all provinces of China, occupy a major share of the Chinese banking market. JCBs, which mostly conduct business in eastern China, occupy second place in the banking market. CCBs limit their business to a certain level of local cities or provinces. Therefore, it will be interesting to investigate the performance differences among these three types of banks.

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The impact of the macroeconomic factors in the bank efficiency: Evidence from the Chinese city banks

Cited by 21 publications

References 54 publications

Research evolution in banking performance: a bibliometric analysis

Research evolution in banking performance: a bibliometric analysis

The effect of forestry on energy efficiency in EU countries: A non‐oriented dynamic slack‐based data envelopment analysis

The risk‐adjusted profit productivity change in Chinese banks: A comparative analysis of the different type banks

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