scholarly journals Efficiency and productivity analysis for intermediary institutions: Turkish capital markets case

2020 ◽  
Vol 4 (2) ◽  
pp. 193-208
Author(s):  
Guler Aras ◽  
Yasemin Karaman ◽  
Evrim Hacioglu Kazak
Keyword(s):  
Capital Markets ◽  
Efficiency Score ◽  
Productivity Index ◽  
Productivity Change ◽  
Productivity Analysis ◽  
Content Type ◽  
Total Productivity ◽  
Trading Volumes ◽  
Administrative Expenses ◽  
Efficiency And Productivity

PurposeThe purpose of this study is to investigate efficiency and productivity of Turkey’s both brokerage sector and intermediary institutions (IIs) that have been active in Turkish capital markets.Design/methodology/approachData envelopment analysis (DEA) and Malmquist total factor productivity index (MPI) are used to analyze efficiency and productivity of Turkey’s both brokerage sector and 51 Turkish IIs constantly operated between the years 2008 and 2018. Paid-in capital, administrative expenses and trading volumes are used as input, while net trading commissions and net profit/loss are used as output in analysis. The calculations of this analysis are made with DEAP 2.2 program and Python.FindingsThe results reveal that during the analysis period, percentage of efficient institutions among 51 IIs was between 18% and 39% while the sector’s mean efficiency score ranged between 52% and 65%. While 2009 is the year with the highest number of efficient institutions, 2013 is observed to be the least. Finally, the results of productivity analysis indicate that all types of IIs are not fully productive during the related period. The striking finding obtained is that though there is a decrease in total productivity change, the technological change has a positive effect on their productivity change.Originality/valueThis study is a double-layered research paper that includes efficiency analysis by DEA in the first step and productivity analysis by using MPI in the second step.

Measurement of financial efficiency and productivity of Turkish Public Universities by using non-parametric methods

2019 ◽  
Vol 11 (4) ◽  
pp. 876-896
Author(s):  
Aslı Günay ◽  
Murat Ali Dulupçu
Keyword(s):  
Total Factor Productivity ◽  
Public Universities ◽  
Productivity Index ◽  
Productivity Change ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Financial Efficiency ◽  
Data Set ◽  
Content Type ◽  
Efficiency And Productivity

Purpose The purpose of this paper is to measure the financial efficiency and productivity of 23 public universities founded in 1992 in Turkey over the period between 2004 and 2013. The results obtained will provide managerial information and act as a guide to public universities’ administrations, in using their resources more effectively. Design/methodology/approach Data envelopment analysis is applied to assess the relative financial efficiency of these universities, while Malmquist total factor productivity index is used to measure the total factor productivity change concerning financial inputs of the universities. Findings The number of financially efficient universities and the number of universities showing an increase in their productivity according to their financial inputs change annually and both of them display a rough trend over the years. A decrease of about 5 percent in the financial productivity of the universities is observed which stems from a technological recession. Therefore, public universities in Turkey are not able to develop effective policies to diversify, increase and use their financial resources. Originality/value When the lack of studies within the literature measuring the financial efficiency of higher education institutions is taken into account, this study can fill a gap in this area. The analyses conducted here distinguish from existing studies on this subject with regards to the extent and diversity of financial data set and the measurement of both efficiency and productivity change of universities considering financial inputs concurrently.

scholarly journals Bank Branch Closure Assessment Using DEA

JEJAK ◽  
2021 ◽  
Vol 14 (1) ◽  
pp. 134-145
Author(s):  
Renata Parsaulian ◽  
Dony Abdul Chalid
Keyword(s):  
Efficiency Score ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Productivity Change ◽  
Data Envelopment ◽  
Bank Branch ◽  
The One ◽  
Branch Office ◽  
Efficiency And Productivity

The downward trend in the number of commercial bank offices is driven by the bank's efforts to shift banking transactions from physical branch to digital channels in order to improve efficiency. In prioritizing the branch closure, bank needs to define the appropriate method used in the analysis. This case study is intended to identify the parameter to determine the prioritization of bank branch office closure. This study uses a non-parametric approach of Data Envelopment Analysis (DEA) to examine the efficiency and productivity change of branch offices at one of the large bank in Indonesia. The one-stage DEA was used to generate the relative efficiency score, and the input-oriented Variable Return to Scale (VRS) assumption is adopted in data analysis based on the production approach. The Malmquist Productivity Index was also adopted to measure the total factor productivity change. The DEA result shows that a number of closed branches in 2019 and 2020 were actually considered efficient, with increasing productivity, compared to many other inefficient branches. The efficiency and productivity score can be further used by the bank’s management to evaluate the upcoming branch closure as well as the overall branches efficiency.

scholarly journals Productivity growth in the winery sector: evidence from Italy and Spain

2016 ◽  
Vol 28 (1) ◽  
pp. 59-75 ◽  
Author(s):  
Ricardo Sellers-Rubio ◽  
Veronica Alampi Sottini ◽  
Silvio Menghini
Keyword(s):  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Productivity Change ◽  
Efficiency Change ◽  
Content Type ◽  
Annual Productivity ◽  
Total Productivity ◽  
Low Efficiency ◽  
First Time ◽  
Practical Implications

Purpose – The purpose of this paper is to estimate total productivity change in the winery sector, decomposing it into efficiency change and technical change. Design/methodology/approach – The methodology is based on the estimation of the Malmquist productivity index for a sample of Spanish and Italian wineries between 2005 and 2013. Findings – The results show very low efficiency levels for the wineries under study. Further, Spanish and Italian wineries show a decrease in their average annual productivity for the period of time analysed. Practical implications – The analysis of the efficiency and the productivity of the wineries is crucial to improve their competitiveness and guarantee their survival. Originality/value – For the first time, a comparative analysis is carried out with data from two major wine-producing countries.

Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia

1970 ◽  
Vol 5 (1) ◽  
pp. 77
Author(s):  
Mahadzir Ismail ◽  
Saliza Sulaiman ◽  
Hasni Abdul Rahim ◽  
Nordiana Nordin
Keyword(s):  
Efficiency Score ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Master Plan ◽  
Before And After ◽  
Domestic Banks ◽  
The Impact ◽  
Efficiency And Productivity

The Financial Master Plan (2001- 2010) aims to enhance the capacity of banking industry so that higher effic iency and productivity can be reaped in the future. This study seeks to determine the impact of merger on the efficiency and productivity ofcommercial banks in Malaysia for the period 1995 until 2005. The study uses a non-parametric approach, nam ely DEA (data envelopment analysis?) to estimate the efficiency scores and to construct the Malmquist productivity index. To enable this estimation, three bank inputs and outputs are used. Amongst the findings are those banks exhibit higher efficiency score after the merger and thefo reign banks are more efficient than the local banks. Productivity of the banks is calculated in both periods, before and after the merger: The results show that, it is the local banks that have improved the most after the merger. The main source of productivity is technical change or innovation. The findings support the existing policy of having larger domestic banks in term of size.

scholarly journals Dual Efficiency and Productivity Analysis of Renewable Energy Alternatives of OECD Countries

2021 ◽  
Vol 13 (13) ◽  
pp. 7401
Author(s):  
Sedef E. Kara ◽  
Mustapha D. Ibrahim ◽  
Sahand Daneshvar
Keyword(s):  
Renewable Energy ◽  
Solar Energy ◽  
Wind Energy ◽  
Oecd Countries ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Productivity Analysis ◽  
Average Efficiency ◽  
Efficiency And Productivity

This paper examines the dual efficiency of bioenergy, renewable hydro energy, solar energy, wind energy, and geothermal energy for selected OECD countries through an integrated model with energy, economic, environmental, and social dimensions. Two questions are explored: Which renewable energy alternative is more dual efficient and productive? Which renewable energy alternative is best for a particular country? Data envelopment analysis (DEA) is used for the efficiency evaluation, and the global Malmquist productivity index is applied for productivity analysis. Results indicate bioenergy as the most efficient renewable energy alternative with a 20% increase in average efficiency in 2016 compared to 2012. Renewable hydro energy, wind energy, and solar energy show a 17.5%, 16%, and 11% increase, respectively. The average efficiency growth across all renewable energy alternatives signifies major advancement. Country performance in renewable energy is non-monolithic; therefore, they should customize their renewable energy portfolio accordingly to their strengths to enhance renewable energy efficiency. Renewable hydro appears to have the most positive productivity change in 2016 compared to 2012, while solar energy regressed in productivity due to its scale inefficiency. All renewable energy alternatives have relatively equal average pure efficiency change. The positive trend in efficiency and productivity provides an incentive for policy makers to pursue further development of renewable energy technologies with a focus on improving scale efficiency.

Productivity growth, catching-up and technology innovation in microfinance institutions in India: evidence using a bootstrap Malmquist Index approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asif Khan ◽  
Rachita Gulati
Keyword(s):  
Productivity Growth ◽  
Productivity Index ◽  
Productivity Change ◽  
Microfinance Institutions ◽  
Truncated Regression ◽  
Content Type ◽  
Tfp Growth ◽  
Catching Up ◽  
Double Bootstrap ◽  
Size Groups

PurposeThis paper aims to examine the total factor productivity (TFP) change and its components: efficiency change and technical change in microfinance institutions (MFIs) in India operating from 2005 to 2018. The study also scrutinizes the variations in productivity levels across the distinct organizational form and size groups of MFIs. In addition to this, the authors identify the contextual factors that determine TFP growth, catching-up and technology innovation in MFIs.Design/methodology/approachThe study employs a smooth homogeneous bootstrap estimation procedure of Simar and Wilson (1999) for obtaining reliable estimates of Malmquist indices –productivity and its components – in a data envelopment analysis (DEA) framework for individual MFIs. In order to identify the determinants of productivity change and its components, the study follows Simar and Wilson's (2007) guidelines and applies a bootstrap truncated regression model. The double bootstrap procedure performs well, both in terms of allowing correct estimation of bias and deriving statistically consistent productivity estimates in the first and root mean square errors in the second stage of the analysis.FindingsThe empirical results reveal that the MFIs have shown average productivity growth of 6.70% during the entire study period. The observed productivity gains are primarily contributed by a larger efficiency increase at the rate of 4.80%, while technical progress occurs at 2.3%. Nonbanking financial companies (NBFC)-MFIs outperformed non-NBFC-MFIs. Small MFIs show the highest TFP growth in terms of size groups, followed by the large MFIs and medium MFIs. The bootstrap truncated regression results suggest that the credit portfolio, size and age of MFIs matter in achieving higher productivity levels.Practical implicationsThe practical implication drawn from the study is that the Indian MFI industry might adopt the latest technology and innovations in the products, risk assessment and credit delivery to improve their productivity levels. The industry must focus on enhancing the managerial skill of its employees to achieve a high productivity level.Originality/valueThis study is perhaps the initial attempt to explain the productivity behavior of MFIs in India by deploying a statistically robust double bootstrap procedure in the DEA-based Malmquist Productivity Index (MPI) framework. The authors estimate the bias-adjusted productivity index and its decompositions, which represent more reliable and statistically consistent estimates. For contextual factors responsible for driving productivity change, the study deploys a bootstrap truncated regression approach.

scholarly journals Total Factor Productivity Growth of Indian General Insurance Companies in the Recent Period: A Bootstrapped Approach

2019 ◽  
Vol 11 (1-2) ◽  
pp. 59-80
Author(s):  
Ram Pratap Sinha
Keyword(s):  
Private Sector ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Malmquist Index ◽  
American Economic Review ◽  
Productivity Index ◽  
Insurance Companies ◽  
Productivity Change ◽  
Productivity Analysis ◽  
Factor Productivity

This study estimates Malmquist index of total factor productivity change of 14 major general insurers in India over the period 2009–10 to 2016–17 over 7 annual windows. The study decomposes total factor productivity index into its constituent components, using several approaches including Färe et al. (1989, Productivity Developments in Swedish Hospitals: A Malmquist Output Index Approach. Carbondale: Department of Economics, Southern Illinois University; 1992, Journal of Productivity Analysis 3(1): 85–101), Färe et al. (1994, American Economic Review 84(1): 66–83), Ray and Desli (1997, American Economic Review 87(5): 1033–39) and Wheelock and Wilson (1999, Journal of Money, Credit and Banking 31(2): 212–23). Furthermore, the study uses bootstrap data envelopment analysis (DEA) method to obtain bias-corrected point and interval estimates of Malmquist index and its components. Finally, the study makes a comparison of productivity performance between public and private sector insurers. The results indicate a modest growth in total factor productivity during the period contributed mainly by efficiency changes. The private sector insurers performed better than the public sector in terms of productivity growth. The variations in productivity performance indicate that insurer scale of activity can affect their performance. JEL Classification: G-23, C-61, D-21

Robust malmquist productivity measurement: evidence from Spanish hotel industry during the Great Recession

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nickolaos G. Tzeremes
Keyword(s):  
Great Recession ◽  
Hotel Industry ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Productivity Change ◽  
Productivity Measurement ◽  
Content Type ◽  
Crisis Period ◽  
The Great Recession ◽  
Robust Version

PurposeThe purpose of this paper is to provide a robust version of the Malmquist Productivity Index (MPI) in order to evaluate hotels' productivity levels during the Great Recession.Design/methodology/approachBased on the order-m frontiers, we apply a robust version of an MPI. We decompose the productivity into three robust components. We use a sample of hotels operating in the Balearic Islands and Canary Islands, and we decompose and evaluate their productivity levels during the period 2004–2013. Moreover, we evaluate hotels' productivity performance during the pre-crisis period, the US subprime crisis period, the global financial crisis (GFC), the sovereign debt crisis period and the after-crisis period.FindingsOur findings show that productivity did not deteriorate due to the adverse effects of economic crisis. This is mainly driven by increased technical change and the ability to operate at optimal scales. The long-term investment in innovation policies which are related to services and processes, appear to be the dominating feature behind hotels' productivity levels, which helped the hotel industry to recover quickly from the Great Recession.Originality/valueThe vast majority of empirical studies evaluating the productivity change in the hotel industry apply MPIs which are based on data envelopment analysis (DEA). However, the productivity measurement which is based on the nonparametric framework is sensitive to sample characteristics. In order to avoid such shortcomings, we apply a robust version of the MPI.

Effects of cross-border acquisitions on efficiency and productivity of acquired companies: evidence from cement industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Slađana Savović ◽  
Predrag Mimović
Keyword(s):  
Data Envelopment Analysis ◽  
Transitional Economies ◽  
Cement Industry ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Content Type ◽  
Cross Border ◽  
Efficiency And Productivity ◽  
Practical Implications

PurposeThe purpose of this paper is to explore the effects of cross-border acquisitions on the efficiency and productivity of acquired companies in the cement industry in the context of a transitional economy.Design/methodology/approachThe Data Envelopment Analysis (DEA) and Malmquist Productivity Index were used to assess the efficiency and productivity of the acquired companies over the period 2000–2018. DEA and Malmquist index are combined with bootstrapping to perform succinct statistical inferences for determining the accuracy of results. The study assesses partial efficiency and productivity of three inputs: material, capital and labour, as well as the total factor efficiency and productivity of the acquired companies in the short and long term after the acquisitions.FindingsThe research results suggest that efficiency of material, efficiency of labour and the total factor efficiency of the acquired companies are higher after the acquisitions than before, while efficiency of capital is lower. In addition, the results show that the acquisitions had a positive impact on total factor productivity of the acquired companies.Practical implicationsThe results of this study have practical implications for managers, especially for policy-makers and industry analysts in deciding whether to encourage or discourage cross-border acquisitions in transitional economies.Originality/valueThe study contributes to a better understanding of the impact of cross-border acquisitions on efficiency and productivity of acquired companies in the manufacturing industry. Research in transitional economies related to subject matter is limited, and this study is the first empirical investigation of the effect of cross-border acquisitions on the efficiency and productivity in the cement industry in Serbia by applying the Data Envelopment Analysis.

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