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The Effects of Ownership Structure on Bank Efficiency for Taiwan: Is there a Non-Linear Relationship?

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  • Chang-Sheng Liao
  • Xinyan Li

Abstract

To investigate the impact of ownership structure and concentration on bank efficiency in the case of Taiwan, we consider the non-linear relationship between ownership and efficiency, using the panel threshold model technique to test whether a non-linear relationship is significant. Empirical findings indicate that ownership structure is significantly impacted by bank efficiency; the results show that managerial ownership negatively relates to efficiency and ownership concentration, and state-ownership has no regard for bank efficiency. The results show that the threshold effect is significant, implying a significant non-linear relationship between board ownership and efficiency. This supports the form of non-linear relation as found in previous literature. Â JEL Classification: G21, G34.

Suggested Citation

  • Chang-Sheng Liao & Xinyan Li, 2022. "The Effects of Ownership Structure on Bank Efficiency for Taiwan: Is there a Non-Linear Relationship?," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 12(5), pages 1-4.
    • Handle: RePEc:spt:apfiba:v:12:y:2022:i:5:f:12_5_4
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    More about this item

    Keywords

    Ownership structure; Concentration; Panel threshold model.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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