Foreign Ownership and Bank Efficiency

2014 ◽  
pp. 75-100
Author(s):  
Özlem Olgu ◽  
Emrah Yılmaz
Keyword(s):  
Banking Sector ◽  
Relevant Literature ◽  
Balance Sheet ◽  
Data Envelopment ◽  
Bank Efficiency ◽  
Financial Ratio ◽  
Second Stage ◽  
Financial Ratio Analysis ◽  
The Relationship ◽  
Shed Light

This chapter examines the association between Foreign Direct Investment (FDI) and efficiency of commercial banks in Turkey during the 2003-2010 period. First, the authors examine the technical efficiency of banks by applying the Data Envelopment Analysis (DEA) and financial ratio analysis following the relevant literature. Then, they attempt to shed light on the relationship between FDI and bank efficiency applying a second stage regression analysis. The results indicate that banks that have received FDI are more efficient than others whilst there is no significant correlation among the FDI dummy and bank efficiency in Turkey. Moreover, the analysis of balance sheet ratios suggests that foreign investors target more profitable and larger banks in the sector to form partnerships. Thus, consistent with Berger et al. (2003), the authors propose that efficiency is a pre-condition rather than a result of FDI in the Turkish banking sector.

scholarly journals Efficiency and Determinants in Libyan Banks

2020 ◽  
Vol 8 (4) ◽  
pp. 1-16
Author(s):  
Khalad Alrafadi
Keyword(s):  
Banking Sector ◽  
Relevant Literature ◽  
Policy Implications ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Bank Efficiency ◽  
Second Stage ◽  
Private Banks ◽  
Mean Cost ◽  
Tobit Regression Model

This paper provides a comparative analysis regarding the performance of 17 Libyan banks over the period 2004 up to 2010. According to the relevant literature, there are few studies that combine both the Data Envelopment Analysis (DEA) technique and Tobit model for assessing the efficiency levels and subsequently examining the determinants of efficiency for the banking sector in Libya. For this study, the DEA technique was used to estimate cost, allocative, and technical efficiency of sampled banks by using DEAP software.  In the second stage, Tobit regression model was used to identify potential determinants of efficiency by using Stata10 software. The results showed that the specialized banks have exhibited higher mean cost efficiency relative to commercial and private banks. The results of efficiency determinants showed positive relationship between bank efficiency, and return on investment (ROA); risk; and size of operation (SO). This paper concludes with some policy implications of the results.        

ANALISIS LAPORAN KEUANGAN UNTUK MENILAI KINERJA KEUANGAN PT. ASTRA AGRO LESTARI Tbk

2019 ◽  
Vol 5 (2) ◽  
pp. 75-88
Author(s):  
M. Shobihin ◽  
Sayekti Suindyah Dwiningwarni ◽  
Supriadi Supriadi
Keyword(s):  
Financial Performance ◽  
Good Condition ◽  
Balance Sheet ◽  
Financial Statements ◽  
Ratio Analysis ◽  
Business Decisions ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Income Statement ◽  
Quantitative Descriptive

The financial statements serve as a benchmark in assessing the financial performance of the company as the basis for making business decisions. The motivation in conducting this research is to support previous research to see the development condition of one of the oil palm plantation companies. The purpose of this study is to assess the financial performance by using financial ratio analysis and horizontal analysis. The method used in this research is Quantitative Descriptive with analysis design using Term series Analysis. The result of the research based on financial ratio analysis shows the liquidity ratio and solvency ratio in good condition, while the activity ratio and profitability ratio are not good because it is below the industry average of similar companies. Based on horizontal analysis, financial performance fluctuated and influenced internal and external factors such as operational performance and the average price of world palm oil. The limitations of this study are using only two analytical tools and financial statements analyzed only the balance sheet and income statement.

scholarly journals IPTEKS PENGUKURAN KINERJA KEUANGAN PADA PT. PLN (PERSERO) WILAYAH SULUTTENGGO

2018 ◽  
Vol 2 (02) ◽  
Author(s):  
Regina F. Pinontoan ◽  
Natalia Y. T. Gerungai
Keyword(s):  
Financial Performance ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Ratios ◽  
Ratio Analysis ◽  
Financial Ratio ◽  
Leverage Ratio ◽  
Financial Ratio Analysis ◽  
A Company

The measurement of financial performance based solely on balance sheet financial statements and profit and loss is able to provide information on the feasibility of a company on the obligations of external parties and also assets owned by the company. From the results of financial statement analysis using financial ratio analysis of PT. PLN (Persero)Region  Sulutttenggo can evaluate the financial performance of companies that show unfavorable conditions where the value of the liquidity ratio is less stable and even decreases. Whereas the results of the calculation of leverage ratio and profitability ratio show fairly good conditions. Thus, the writer suggest that the management always evaluate in improving the company's financial performance.Keywords : financial statement, financial performance, financial ratios

scholarly journals Bank Competition, Efficiency, and Stability in Macau

2019 ◽  
Vol 8 (4) ◽  
pp. 157
Author(s):  
Harry Xia ◽  
Kevin Lei ◽  
Jiaochen Liang
Keyword(s):  
Economies Of Scale ◽  
Banking Sector ◽  
Banking System ◽  
Bank Loans ◽  
Bank Competition ◽  
Income Volatility ◽  
Bank Efficiency ◽  
Insolvency Risk ◽  
Relationship Of ◽  
The Relationship

Macau has the uppermost population density and the fourth-highest GDP per capita in the world. Macau’s banking system is regarded as one of the most important indicators of Macau’s macroeconomic growth and stability during its transformation into a wealthy and modern metropolis. In this study, we use a sample of 26 banks to explore the relationship of bank competition, efficiency and stability in Macau from its return to China in 1999 to 2016. Our results demonstrate that bank competition does cause efficiency in Macau throughout the study period. We also find indications of a positive but not significant connection between bank market power and bank fragility including income volatility and insolvency risk. Moreover, this study finds no evidence that the size of operations proxied by total bank loans and total assets would impact bank efficiency, indicating that economies of scale or bank market share don’t necessarily bring about efficiency in Macau. Our evidence contributes to the literature by being the first to thoroughly examine the relation of bank competition, efficiency and stability in Macau. The findings provide meaningful implications to the practitioners and policymakers to make sound decisions accordingly, especially to closely monitor and maintain a proper level of competition in Macau’s banking sector.

scholarly journals BANKING SECTOR EFFICIENCY: A DEA AND TIME SERIES APPROACH

Ekonomika ◽  
2010 ◽  
Vol 89 (2) ◽  
pp. 111-119 ◽  
Author(s):  
Fadzlan Suflan
Keyword(s):  
Technical Efficiency ◽  
Banking Sector ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Bank Efficiency ◽  
New Approach ◽  
Time Series Approach ◽  
The Mean ◽  
Dea Method

The paper provides a new approach to modeling bank efficiency. Unlike previous bank efficiency studies, the present paper employs the data envelopment analysis (DEA) method on quarterly data to construct the efficiency frontiers. The Malaysian banking sector is used for a case study. The results show that the Malaysian banking sector has exhibited the mean technical efficiency of 97.3%, suggesting the minimal input waste of 2.7%. The empirical findings suggest that the pure technical efficiency outweighs the scale efficiency in determining the Malaysian banking sector’s technical efficiency. The results imply that, although the Malaysian banking sector has been efficient in managerial terms, it has been operating at a non-optimal scale of operations.p>

scholarly journals Nigeria–China Relations: The Contemporary Challenges

2019 ◽  
pp. 1258-1265
Author(s):  
Dr. Adigbuo Ebere Richard
Keyword(s):  
Qualitative Research ◽  
International Relations ◽  
Research Method ◽  
International System ◽  
Relevant Literature ◽  
Balance Sheet ◽  
Diplomatic Relations ◽  
Bilateral Relations ◽  
Balance Of Trade ◽  
The Relationship

2018 marks the 47th anniversary of Nigeria-China diplomatic relations. Nigeria’s relation with china is decisively important for the future of both countries and to an ever evolving international system. It is appropriate to understand the contemporary challenges facing this relationship. Thus, this article examines Sino-Nigeria relation with a view to providing a balance sheet of cost and benefits. To do this, the study rests on qualitative research method that examines and synthesizes extant literature on international relations and in particular relevant literature on Sino-Nigeria relations. It is thus discovered that in the bilateral relations between the two countries, China has gained more than Nigeria in terms of balance of trade and the unwillingness of China to transfer technology to Nigeria. Since the relationship is asymmetrical, the article concludes that China cannot solve Nigeria’s problem and that the latter must learn from China bitter and hard way to greatness.

scholarly journals Relationship between competition and efficiency in the Czech banking industry

2013 ◽  
Vol 61 (7) ◽  
pp. 2701-2707 ◽  
Author(s):  
Iveta Řepková ◽  
Daniel Stavárek
Keyword(s):  
Positive Relationship ◽  
Banking Sector ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
Empirical Literature ◽  
Data Envelopment ◽  
Reverse Effect ◽  
Banking Competition ◽  
Johansen Cointegration Test ◽  
The Relationship

The aim of the paper is to estimate the relationship between competition and efficiency in the Czech banking industry in the period 2001–2010. The theoretical definition and literature review of the relationship between banking competition and efficiency is included. Lerner index and Data Envelopment Analysis were used to estimate the degree of competition and efficiency in the Czech banking sector. The market structure of the Czech banking industry was estimated as a monopolistic competition and it was found a slight increase in the competition in the banking sector. The efficiency of the Czech banks increased in the analysed period. Using a Johansen cointegration test, the paper contributes to the empirical literature, testing not only the causality running from competition to efficiency, but also the reverse effect running from efficiency to competition. The positive relationship between competition and efficiency was estimated in the Czech banking sector. These findings are in line with the Quiet Life Hypothesis and the suggestions that the increase of the competition will contribute to efficiency.

Stressed assets, off-balance sheet business activities and performance of Indian banking sector: a DEA double bootstrap approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Shahid Zaman ◽  
Anup Kumar Bhandari
Keyword(s):  
Technical Efficiency ◽  
Commercial Banks ◽  
Banking Sector ◽  
Balance Sheet ◽  
Capital Adequacy ◽  
Bank Efficiency ◽  
Content Type ◽  
Bootstrap Approach ◽  
Double Bootstrap ◽  
Indian Banks

Purpose This paper examines the technical efficiency (TE) of Indian commercial banks during 1998–2015. Design/methodology/approach This study uses mathematical programming-based data envelopment analysis (DEA) methodology to measure technical efficiency of Indian banks. Further, Simar and Wilson (2007) double bootstrap procedure is applied to examine the determinants of efficiency of the Indian banks, by examining the effects of various bank specific and other contextual variables. Findings The results indicate substantial upward bias in the conventional efficiency estimates of the Indian commercial banks. Needless to note, such upward bias is consistent with the theoretical postulates. The bootstrapped regression results show that increasing capital adequacy ratio is positively associated with bank efficiency. The popular belief that non-performing assets have a dampening effect on performance of banks is validated. Among others, ownership category is observed to be an important determining factor of bank efficiency. Specifically, state-owned banks (SOBs) are relatively lagging behind the foreign banks. Moreover, larger banks are observed to have a significantly higher level of efficiency, therefore, recent official policy initiatives toward consolidation of SOBs are validated. Originality/value As this study uses Simar and Wilson (2007) bootstrap approach, it enables the authors to have an estimate of the extent of bias in the traditional DEA TE scores. It also helps us drawing consistent inferences by rectifying the problem of serial correlation in the conventional second stage regression in this regard.

Determinants of Efficiency in the Malaysian Banking Sector: Evidence from Semi-parametric Data Envelopment Analysis Method

2016 ◽  
Vol 4 (2) ◽  
pp. 151-172 ◽  
Author(s):  
Fadzlan Sufian
Keyword(s):  
Data Envelopment Analysis ◽  
Banking Sector ◽  
Productive Efficiency ◽  
Data Envelopment ◽  
Panel Regression ◽  
Analysis Method ◽  
Bank Efficiency ◽  
Panel Regressions ◽  
Parametric Data ◽  
The Impact

This article follows Simar and Wilson’s (2007 , Journal of Econometrics, 136(1), 31–64) two-stage procedure to analyse the efficiency of the Malaysian banking sector. In the first stage, we employ the data envelopment analysis (DEA) method to compute the efficiency of individual banks during the period 1999–2008. We then use panel regressions to examine the impact of ownership on bank efficiency while controlling for the potential impacts of contextual variables. The DEA results indicate an increase in efficiency over the sample period. The results from the panel regression suggest that productive efficiency is positively related to bank size, capitalization and foreign ownership. On the other hand, the publicly listed and government-owned banks have been relatively inefficient in their intermediation function.

scholarly journals Measuring risk and efficiency for some Islamic banks in Kuwait: قياس المخاطر والكفاءة لبعض البنوك الإسلامية في الكويت

2017 ◽  
Vol 3 (2) ◽  
Author(s):  
Widad Fahd Al-mudif
Keyword(s):  
Credit Risk ◽  
Operational Risk ◽  
Operational Efficiency ◽  
Second Phase ◽  
Islamic Banks ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Third Stage ◽  
Three Stages ◽  
The Relationship

This study measures risk and efficiency in selected sample of Islamic banks in Kuwait using financial ratio analysis during the period (2010-2014) in order to find relationship between risk and operation efficiency in the mentioned sample. We used three stages of analysis in this paper, first phase included the measurement of the efficiency of these banks through the financial ratios related to operational efficiency analysis, while the second phase involves the analysis of credit risk ratios, liquidity and operational risk, and in the third stage I studied the relationship between these risks and its impact on the financial and operational efficiency. It has been introduced analytical tables showing the relationship between efficiency and risk of four Islamic banks in Kuwait. The overall results of this paper was that the operational efficiency of these banks are affected directly proportional to credit risk, and inversely to liquidity risk, while there is no clear relationship between operational efficiency and operational risk

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