Technical Efficiency of Large Bank Production in Asia and the Pacific
Multinational Finance Journal, 2005, vol. 9, no. 1 & 2, pp. 1-22 | https://doi.org/10.17578/9-1/2-1
Milind Sathye, University of Canberra, Australia
Abstract:
This study investigates the efficiency of large commercial banks in Asia and the Pacific region. In particular, the overall technical efficiency, pure technical efficiency and scale efficiency has been estimated, the factors (including, the environmental factors) that influence efficiency of banks in the region have been explained and the mean efficiency of large banks in different countries of the region has been compared. The study found that when the national frontier was expanded to regional frontier, the efficiency scores declined, the environmental variables had significant influence on efficiency scores and developed countries showed pure technical efficiency score significantly higher than the less developed countries. Hence, going by the global advantage hypothesis a surge in mergers and acquisitions of banks in this region is predicted.
Keywords : Bank efficiency; data envelopment analysis; Asia-Pacific
Citation (Format 1)
Sathye, Milind, 2005, Technical Efficiency of Large Bank Production in Asia and the Pacific, Multinational Finance Journal 9, 1-22.
Citation (Format 2)
Sathye, M., 2005. Technical Efficiency of Large Bank Production in Asia and the Pacific. Multinational Finance Journal 9, 1-22.
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Managerial Cost Inefficiency and Takeovers of U.S. Thrifts
Multinational Finance Journal, 2005, vol. 9, no. 1 & 2, pp. 23-42 | https://doi.org/10.17578/9-1/2-2
Fatma Cebenoyan, Hunter College-CUNY, U.S.A.
A. Sinan Cebenoyan, Hofstra University, U.S.A.
Elizabeth S. Cooperman, University of Colorado at Denver, U.S.A.
Abstract:
This paper uses a two-step methodology to examine the relationship between managerial cost inefficiency and the takeover of U.S. thrifts during a period of market liberalization and widespread takeover activity, 1994 to 2000. In the first stage using stochastic cost frontiers, controllable managerial cost inefficiency scores are estimated for all stock firms operating each year in 1994 to 2000. In a second stage, these scores are used to examine correlates of takeovers, focusing on cost inefficiency. For takeovers by banks, a significant negative relationship between cost inefficiency and takeover is found, suggesting an exit of more cost efficient firms from the thrift industry during this period. However, takeovers by thrifts are associated with other characteristics.
Keywords : Depository institutions; thrifts; takeovers and cost inefficiency
Citation (Format 1)
Cebenoyan, Fatma, A. Sinan Cebenoyan, and Elizabeth S. Cooperman, 2005, Managerial Cost Inefficiency and Takeovers of U.S. Thrifts, Multinational Finance Journal 9, 23-42.
Citation (Format 2)
Cebenoyan, F., Cebenoyan, A., Cooperman, E., 2005. Managerial Cost Inefficiency and Takeovers of U.S. Thrifts. Multinational Finance Journal 9, 23-42.
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Multinational Finance Journal, 2005, vol. 9, no. 1 & 2, pp. 43-71 | https://doi.org/10.17578/9-1/2-3
Steven Pilloff, Hood College, U.S.A.
Abstract:
In their competitive analysis of proposed bank mergers, the Board of Governors of the Federal Reserve System, the U.S. Department of Justice, and other U.S. banking agencies accept branch divestitures as an antitrust remedy in local markets where there is substantial overlap between the acquirer and target. The results of this study, which examines the performance of 751 branches that were divested between June 1989 and June 1999 in conjunction with a merger in the U.S. that raised possible competition issues, are consistent with the policy of accepting branch divestitures as an antitrust remedy being successful. Divested branches operate for lengths of time that are comparable to all branches, and even though they experience substantial deposit runoff around the time of the merger, divested branches subsequently exhibit deposit growth rates that are comparable to those of other similar branches.
Keywords : Divestiture; bank merger; antitrust policy and remedy; competition
Citation (Format 1)
Pilloff, Steven, 2005, What’s Happened at Divested Bank Offices? An Analysis of Antitrust Divestitures in Bank Mergers in the U.S., Multinational Finance Journal 9, 43-71.
Citation (Format 2)
Pilloff, S., 2005. What’s Happened at Divested Bank Offices? An Analysis of Antitrust Divestitures in Bank Mergers in the U.S.. Multinational Finance Journal 9, 43-71.