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Bank efficiency and shareholder value in Asia Pacific

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  • Fu, Xiaoqing (Maggie)
  • Lin, Yongjia (Rebecca)
  • Molyneux, Philip

Abstract

This paper uses dynamic panel estimation approaches to investigate the relationship between shareholder value and efficiency for a large sample of commercial banks in 14 Asia-Pacific economies between 2003 and 2010. In general, the results indicate that shareholder value is positively linked to improvements in both cost and profit efficiency, and the influence varies over time. The findings also suggest that bank size, credit losses, and market risk significantly influence bank performance. These results are robust to various model specifications.

Suggested Citation

  • Fu, Xiaoqing (Maggie) & Lin, Yongjia (Rebecca) & Molyneux, Philip, 2014. "Bank efficiency and shareholder value in Asia Pacific," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 33(C), pages 200-222.
    • Handle: RePEc:eee:intfin:v:33:y:2014:i:c:p:200-222
    DOI: 10.1016/j.intfin.2014.08.004
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    More about this item

    Keywords

    Bank efficiency; Shareholder value; Risk-taking; Banks in Asia Pacific;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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