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Bank efficiency estimation and the change of the accounting standards: evidence from Greece

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  • A.I. Dimitras
  • K. Kosmidou
  • A.K. Apostolou

Abstract

The paper investigates the effect of the changes in the accounting standards on the efficiency estimates of the Greek banks. The paper presents the main changes in the accounting system for the Greek commercial banks with the adoption of IFRS. Using the financial reports of the banks for the years 2004 (prepared in conformity with local GAAP) and 2005 (prepared in conformity with IFRS and including the adjusted to IFRS relevant financial statements of 2004), we investigate the performance of the Greek banking sector. Several efficiency estimates of individual banks are estimated using non-parametric data envelopment analysis (DEA). Specifically, there are three different approaches employed to differentiate how efficiency scores vary with changes in inputs and outputs due to the changes in the accounting system. The differences in the information and performance evaluation are presented and the results are discussed thoroughly.

Suggested Citation

  • A.I. Dimitras & K. Kosmidou & A.K. Apostolou, 2010. "Bank efficiency estimation and the change of the accounting standards: evidence from Greece," International Journal of Managerial and Financial Accounting, Inderscience Enterprises Ltd, vol. 2(1), pages 20-39.
    • Handle: RePEc:ids:injmfa:v:2:y:2010:i:1:p:20-39
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    2. Dimitras, Augustinos I. & Gaganis, Chrysovalantis & Pasiouras, Fotios, 2018. "Financial reporting standards' change and the efficiency measures of EU banks," International Review of Financial Analysis, Elsevier, vol. 59(C), pages 223-233.
    3. S G Sisira Dharmasri Jayasekara & K L Wasantha Perera & A Roshan Ajward, 2018. "Fair Value Accounting Practices and Efficiency of Banks: A Theoretical Perspective," Accounting and Finance Research, Sciedu Press, vol. 7(4), pages 1-66, November.
    4. Chuang-Min Chao & Ming-Miin Yu & Nan-Hsing Hsiung & Li-Hsueh Chen, 2018. "Profitability efficiency, marketability efficiency and technology gaps in Taiwan’s banking industry: meta-frontier network data envelopment analysis," Applied Economics, Taylor & Francis Journals, vol. 50(3), pages 233-250, January.

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