The determinants of efficiency of publicly listed Chinese banks: evidence from two-stage banking models

The paper attempts to investigate the long-term trend in the efficiency of the Chinese banking sector over the period 1997–2006 by employing the Data Envelopment Analysis (DEA) window analysis method. We find that the small banks have exhibited the lowest mean technical efficiency compared to their...

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Main Author: Sufian, Fadzlan
Format: Article
Language:English
Published: Taylor & Francis 2009
Subjects:
Online Access:http://irep.iium.edu.my/5237/
http://irep.iium.edu.my/5237/
http://irep.iium.edu.my/5237/1/37293731.pdf
id iium-5237
recordtype eprints
spelling iium-52372011-12-20T08:06:54Z http://irep.iium.edu.my/5237/ The determinants of efficiency of publicly listed Chinese banks: evidence from two-stage banking models Sufian, Fadzlan HG1501 Banking The paper attempts to investigate the long-term trend in the efficiency of the Chinese banking sector over the period 1997–2006 by employing the Data Envelopment Analysis (DEA) window analysis method. We find that the small banks have exhibited the lowest mean technical efficiency compared to their medium and large bank peers, while the medium-sized banks were relatively more technically efficient compared to their small and large bank counterparts. The empirical findings suggest that the Joint Stock Commercial Banks (JSCBs) have been relatively more technically efficient compared to their State-Owned Commercial Bank (SOCB) counterparts attributed to higher mean scale efficiency. On the other hand, the SOCBs have outperformed their JSCB counterparts in terms of pure technical efficiency. The results from the second-stage regression analysis suggest that technical efficiency is positively associated with diversification, loans intensity, capitalization levels, and economic growth. On the other hand, technical efficiency is negatively related to size and expense preference behaviour. Taylor & Francis 2009-03 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5237/1/37293731.pdf Sufian, Fadzlan (2009) The determinants of efficiency of publicly listed Chinese banks: evidence from two-stage banking models. Macroeconomics and Finance in Emerging Market Economies, 2 (1). pp. 93-133. ISSN 1752-0851 (O), 1752-0843 (P) http://www.tandfonline.com/doi/abs/10.1080/17520840902726458#preview
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG1501 Banking
spellingShingle HG1501 Banking
Sufian, Fadzlan
The determinants of efficiency of publicly listed Chinese banks: evidence from two-stage banking models
description The paper attempts to investigate the long-term trend in the efficiency of the Chinese banking sector over the period 1997–2006 by employing the Data Envelopment Analysis (DEA) window analysis method. We find that the small banks have exhibited the lowest mean technical efficiency compared to their medium and large bank peers, while the medium-sized banks were relatively more technically efficient compared to their small and large bank counterparts. The empirical findings suggest that the Joint Stock Commercial Banks (JSCBs) have been relatively more technically efficient compared to their State-Owned Commercial Bank (SOCB) counterparts attributed to higher mean scale efficiency. On the other hand, the SOCBs have outperformed their JSCB counterparts in terms of pure technical efficiency. The results from the second-stage regression analysis suggest that technical efficiency is positively associated with diversification, loans intensity, capitalization levels, and economic growth. On the other hand, technical efficiency is negatively related to size and expense preference behaviour.
format Article
author Sufian, Fadzlan
author_facet Sufian, Fadzlan
author_sort Sufian, Fadzlan
title The determinants of efficiency of publicly listed Chinese banks: evidence from two-stage banking models
title_short The determinants of efficiency of publicly listed Chinese banks: evidence from two-stage banking models
title_full The determinants of efficiency of publicly listed Chinese banks: evidence from two-stage banking models
title_fullStr The determinants of efficiency of publicly listed Chinese banks: evidence from two-stage banking models
title_full_unstemmed The determinants of efficiency of publicly listed Chinese banks: evidence from two-stage banking models
title_sort determinants of efficiency of publicly listed chinese banks: evidence from two-stage banking models
publisher Taylor & Francis
publishDate 2009
url http://irep.iium.edu.my/5237/
http://irep.iium.edu.my/5237/
http://irep.iium.edu.my/5237/1/37293731.pdf
first_indexed 2023-09-18T20:13:43Z
last_indexed 2023-09-18T20:13:43Z
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